The Department for Work and Pensions (DWP) is cancelling 4 benefits by the end of the 2024-25 financial year. This major change aims to simplify the benefits system by transitioning existing claimants onto Universal Credit. While this shift will streamline operations and save money, it will also bring significant changes for many households currently receiving these benefits.
DWP is Cancelling 4 Benefits
The benefits being discontinued are:
| Benefit Type | Description | Affected Groups |
|---|---|---|
| Working Tax Credit | Support for low earners | Individuals and couples with low earnings |
| Child Tax Credit | Financial help for families with children | Families with children |
| Jobseeker’s Allowance | Benefits for unemployed individuals seeking work | Unemployed individuals |
| Income Support | Assistance for low-income individuals, including carers | Individuals, carers, and lone parents |
Around 500,000 households will be affected. These households need to switch to Universal Credit by May 2024 to avoid losing their benefits.
Timeline for Transition
Here’s the schedule for when these benefits will be transitioned to Universal Credit:
| Month | Affected Groups | Details |
|---|---|---|
| April 2024 | Income Support and Tax Credit claimants with Housing Benefit | Migration notices issued |
| June 2024 | Housing Benefit-only claimants | Notices sent out |
| July 2024 | Employment Support Allowance claimants with Child Tax Credits | Notices sent out |
| September 2024 | Jobseeker’s Allowance claimants | Notifications issued |
| August 2024 | Tax Credit claimants over State Pension age | Contacted for Universal Credit or Pension Credit |
Support and Adjustments
To ease the transition, the DWP is providing extra support:
| Support Type | Description |
|---|---|
| Additional Help | Extra support channels to assist with the transition |
| Feedback Handling | Rapid resolution of issues and improvements based on feedback |
Employment Minister Jo Churchill assures that the DWP is addressing issues promptly to ensure a smooth transition for all affected individuals.
Financial Implications for Tax Credit Recipients
Before the full switch to Universal Credit, there will be final adjustments to tax credits:
| Benefit Type | Old Amount | New Amount |
|---|---|---|
| Working Tax Credit | ||
| Basic Element | £2,280 | £2,435 |
| Couple and Lone Parent | £2,340 | £2,500 |
| Disabled Worker | £3,685 | £3,935 |
| Severe Disability | £1,595 | £1,705 |
| Childcare Costs (1 child) | £175 | £175 |
| Childcare Costs (2+ children) | £300 | £300 |
| Benefit Type | Old Amount | New Amount |
|---|---|---|
| Child Tax Credit | ||
| Family Element | £545 | £545 |
| Child Element | £3,235 | £3,455 |
| Disability (Disabled Child) | £3,905 | £4,170 |
| Disability (Severely Disabled Child) | £1,575 | £1,680 |
Why the Change?
The move to Universal Credit is intended to:
| Reason | Description |
|---|---|
| Simplify the Benefits System | Combines multiple benefits into a single payment |
| Reduce Administrative Costs | Eliminates outdated systems and processes |
| Prevent Errors and Fraud | Improves management to reduce mistakes and fraud |
Conclusion
The transition to Universal Credit represents a significant shift in the UK benefits system. For those affected, it is crucial to stay informed and proactive to ensure a smooth switch. The DWP is dedicated to helping everyone through this change, but being aware of the new system and deadlines will help avoid any disruptions in benefits.
FAQ’s
What benefits are being cancelled by the DWP?
The DWP is cancelling Working Tax Credit, Child Tax Credit, Jobseeker’s Allowance, and Income Support.
When will the changes take effect?
The transition starts in April 2024 and continues through August 2024, with specific notices sent out each month.
How will this affect my financial support?
You’ll need to switch to Universal Credit. Final benefit amounts will be adjusted before the switch, and the DWP is providing support to help with the transition.
