DWP benefit payments to rise for hundreds of thousands of people

Many people will soon receive letters from DWP

Hundreds of thousands of individuals on six different benefits could soon see their payments rise. The Government is phasing out so-called legacy benefits, with these being replaced by Universal Credit.

The six benefits to be axed are working tax credit, child tax credit, Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance, and Housing Benefit, all of which will be phased out at varying times.

Claimants will have to apply for Universal Credit when they receive what's known as a "migration notice" in the post. Once this letter is received, a person has a three-month window to make the switch - or risk losing benefits. 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 said more than half (55%) of impacted benefit claimants should see their payments rise as a result of the move. The "majority" of people have been reassured they shouldn't face any financial disadvantages through the changeover, 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."