January 13, 2025 – The Department for Work and Pensions (DWP) is finalizing the phase-out of four key legacy benefits, with all claimants required to transition to Universal Credit by the end of 2025. This move marks the end of the line for older benefits as the government pushes to simplify the welfare system. Claimants are being urged to act quickly to ensure their financial support isn’t disrupted.
Which Benefits Are Being Scrapped?
The four legacy benefits being replaced include:
- Income Support
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Working Tax Credit and Child Tax Credit
These benefits are being rolled into Universal Credit, which consolidates multiple payments into one monthly installment.
Why the Change?
The government says Universal Credit is designed to be a more streamlined and modern system that makes it easier for claimants to manage their payments. It also aims to encourage work by offering better support for those moving into employment.
However, transitioning to the new system requires action from claimants. If you’re currently receiving one of these legacy benefits, you will receive a migration notice from the DWP.
What Happens If You Don’t Act?
Once you receive a migration notice, you typically have three months to apply for Universal Credit. Failure to apply within this window could result in your payments stopping entirely. It’s essential to act quickly once you receive the letter.
Will You Be Better Off?
The government claims most people will either see no change or receive higher payments under Universal Credit. However, some may experience a reduction, particularly if they previously received higher entitlements under legacy systems. To help with the transition, there is a transitional protection in place to ensure claimants don’t lose out financially overnight.
What You Should Do Next
- Look Out for Your Migration Notice: If you haven’t received it yet, make sure the DWP has your correct address. Notices are being sent out in stages.
- Apply for Universal Credit Promptly: You can apply online or seek help through services like Citizens Advice if you need assistance with your application.
- Review Your Finances: Check how the switch to Universal Credit will impact your payments using an online benefits calculator.
Important Support Available
The DWP provides guidance through its website, and organizations like Citizens Advice and local welfare groups can help you understand your options. If you have special circumstances, such as a disability or caring responsibilities, additional support may be available.
Why It Matters
For millions of people, this transition is a major shift in how financial support is managed. Acting promptly and staying informed is the key to ensuring you don’t face a gap in payments during the switch.
