Some benefit claimants are at risk of losing payments from switching (Image: Getty Images)
The Department for Work and Pensions (DWP) is set to revolutionise the benefits system by phasing out a host of outdated legacy benefits and bringing in Universal Credit, affecting a vast number of people across the UK. The list of benefits due to be replaced includes Housing Benefit, Income-related Employment and Support Allowance (ESA), Income-based Jobseeker’s Allowance (JSA), Child Tax Credit, Working Tax Credit, and Income Support.
aims to have all claimants on Universal Credit by March 2026. Claimants will receive a “migration notice” by post when it’s their turn to switch, giving them a three-month deadline to apply for Universal Credit.
If they don’t apply within this period, their current benefits will stop. Before deciding to move to Universal Credit early, it’s vital to consider the implications carefully – once you’ve switched, there’s no option to revert to the previous benefits.
It’s advisable to start with a detailed personal review using free online benefits calculators from organisations like , or . However, these tools should not be the sole basis for decisions.
For tailored advice, it’s best to consult with experts from Citizens Advice or Turn2Us, who can help navigate the payment changes, reports .
The has laid out the details about Universal Credit, including payment frequencies, potential reductions due to debt, and possible work-related conditions. They report that 55% of claimants will be better off on Universal Credit, while 35% may find themselves worse off.
The remaining individuals are likely to see no impact on their financial situation. For those who do fare worse under the new system, monthly transition payments are available to offset any losses. However, this is conditional on people moving over through the “managed migration” route.
This transitional protection continues until the Universal Credit payments equal what was previously received from legacy benefits. Crucially, there’s a five-week waiting period for the initial Universal Credit payment but note that certain legacy benefits—like Housing Benefit, Income Support, income-related ESA, and income-based JSA—will carry on for two weeks, providing a cushion during this wait.