Six DWP benefits set to be axed by end of 2024

The government plans to move more people over to Universal Credit

As of last month, there were 5.8 million people on Universal Credit (Getty Images/iStockphoto)

The Department for Work and Pensions will be scrapping six legacy benefits by the end of 2024 as the government moves more people over to Universal Credit.

The mass transfer to the new benefits system was initially paused due to the pandemic but has since started up again in May this year. The DWP aims to have the entire transfer completed by the end of 2024.

The payments due to change are Child and Working Tax Credit, Income-based Jobseeker's Allowance (JSA), Income Support, Income-related Employment and Support Allowance (ESA), and Housing Benefit.

The move for Income-related Employment and Support Allowance was extended until 2028 after the Autumn Statement.

The government voted to end the legacy benefit system in 2012, calling the Universal Credit system a better fit for the 21st century.

They said that the six benefits all have "complex and inefficient systems" that are based on "aging and inflexible IT systems".

Most people can no longer make any new claims for these benefits and so must apply for Universal Credit.

Households being moved will receive a "migration notice" in the post when they are going to be transferred over, which will give them a three-month deadline to claim Universal Credit. Payments will automatically stop if a claim is not made within this time period.

A Universal Credit claim will stop any old benefits and the first payment will take up to five weeks to arrive.

Some legacy benefits will continue for a few weeks to help assist people between the changes. However, tax credits payments will stop as soon as a person claims Universal Credit.

Recipients of certain legacy benefits do not need to wait until they are notified to make the move to Universal Credit, and anyone who thinks they will be better off can immediately make the move.

People are being encouraged to check their entitlement for Universal Credit using an independent benefits calculator as some may not be better off on Universal Credit.

The DWP estimates 1.4 million people will be better off on Universal Credit, while 300,000 will see no change. But 900,000 could be worse off than before.

For those who find themselves worse off, the DWP will top-up payments to make sure people receive the same benefits they did on the legacy system until their circumstances change.

Claimants who are unsure if they would be better off are being urged to wait to be moved as the top-up payments only apply to those moved by the DWP.

As of last month, there were 5.8 million people on Universal Credit. The number of people on the benefit peaked at 6 million in March 2021, a year after the start of the national lockdown due to the coronavirus pandemic.

On average, there were 43,000 claims and starts per week to Universal Credit in October 2022, while women make up just over half of the recipients at 57 per cent.

The DWP confirmed the new weekly payment rates on 23 November and has published a full online guide to the increases for State Pensions, benefits, and the increased benefit cap.