Big changes ahead
The Department for Work and Pensions plans to scrap six benefits by the end of 2024, moving claimants over to Universal Credit instead. The changeover was paused during the Covid-19 pandemic but started up again in May this year.
Once a person has made a Universal Credit claim, their older, 'legacy' benefit will stop and they will have to wait five weeks for their first Universal Credit payment to arrive. To help bridge the gap, some legacy benefits will 'run on' for a few weeks, but tax credits will stop as soon as the person claims Universal Credit.
According to the DWP, 1.4 million people will be better off on Universal Credit, while 300,000 will see no change in their income. However, 900,000 may be worse off on the new system.
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