DWP to increase benefit payments for hundreds of thousands of people

People are being urged to look out for letters from the DWP

Hundreds of thousands of people on six different benefits could be in for a payment increase as the Government phases out so-called legacy benefits and replaces them with Universal Credit.

Tax credit, child tax credit, Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance, and Housing Benefit will all be gradually eliminated, with claimants needing to apply for Universal Credit when they receive a letter known as a "migration notice".

From receipt of this, people will have three months to make the switch, or risk seeing their payments stopped. People do not need to act until they receive the letter, and some may have already moved over to Universal Credit.

The Department for Work and Pensions (DWP) has indicated that over half (55%) of those affected should see an increase in payments as a result of the move. The "majority" have been assured that they should not face any financial disadvantages due to the switch, as reported by Birmingham Live.

This week the DWP issued a reminder to anyone affected by the move, ahead of tax credits being shut down completely in April 2025. DWP said: "Anyone affected will be sent a 'migration notice' by DWP to apply for Universal Credit as the department continues to transition over a million claimants on legacy benefits to Universal Credit.

"Legacy benefits - such as tax credits, Housing Benefit, Income Support, Jobseeker's Allowance and Income-Related Employment and Support Allowance - are being phased out to bring government financial support into one place and, importantly, the majority of people will not be worse off under Universal Credit."