The Department for Work and Pensions (DWP) has terminated benefits for over 318,000 individuals who failed to comply with instructions to switch to Universal Credit. This move coincides with the phasing out of several legacy benefits, including Working Tax Credit, Child Tax Credit, and Income Support, as the government pushes for a unified benefits system.
Around 318,000 individuals have had their benefit payments halted for ignoring specific instructions from the Department for Work and Pensions ( DWP ). This has affected various types of claims, as the DWP has also announced that two benefits will be permanently discontinued in just a few weeks, with four others set to be phased out during the financial year 2025-2026.
The introduction of Universal Credit will mark the end of Working Tax Credit, Child Tax Credit, Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance, and Housing Benefit. The first two of these legacy benefits will cease when the tax credits system, managed by HMRC, shuts down at the end of March 2025. \The DWP is dispatching 'migration notice' letters to households, instructing them to follow specific steps to claim Universal Credit instead of their current payments. This must be done within three months unless an extension is requested. The most recent DWP statistics reveal that approximately 875,000 people have successfully transitioned to Universal Credit, 318,000 had their benefits terminated when they disregarded instructions to switch, and 164,000 claims are still being processed. The majority of those whose claim was closed because they did not transition to Universal Credit were receiving both Working Tax Credit and Child Tax Credit (almost 220,000 claimants), while 64,000 were on Working Tax Credit only and another 23,000 solely receiving Child Tax Credit, reports Birmingham Live. Approximately 6,000 individuals who had their legacy benefits ceased were receiving both types of tax credits in addition to Housing Benefit. Just over 1,000 were beneficiaries of a combination of Child Tax Credit, Housing Benefit and Income Support. \The final group to be asked to transition are those on income-related Employment and Support Allowance (ESA) - a benefit for those with disabilities and long-term health conditions that limit their ability to work. Those receiving it alongside Child Tax Credit and/or Housing Benefit have already started receiving letters, and so far, most have successfully made the switch. A trial run has seen just under 700 people who only receive ESA transferred to Universal Credit, ahead of the process being ramped up from February to ensure completion by year's end. The DWP has confirmed the introduction of an 'enhanced support journey' for income-related ESA claimants who may require additional assistance to apply for Universal Credit. This is offered after the standard three-month migration deadline has passed and includes extra phone contact and, if necessary, home visits.
Universal Credit Benefits DWP Migration Social Welfare Working Tax Credit Child Tax Credit Income Support ESA
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