DWP ploughs ahead with plan to 'phase out' five benefits

Several benefits being phased out with Universal Credit replacing them under a managed migration process from the DWP, it has confirmed.

The Department for Work and Pensions is ploughing on with plans to phase out FIVE benefits. Several benefits being phased out with Universal Credit replacing them under a managed migration process from the DWP, it has confirmed.

Housing Benefit, Income Support, Jobseekers’ Allowance and Income Related Employment and Support Allowance are all being moved to Universal Credit. Tax credits are closing in April 2025 and the DWP has warned that claimants must respond to their migration notices, too.

You can choose to claim Universal Credit at any time, but you should get advice before claiming to make sure you will be better off. Some changes mean that you need to claim Univeral Credit. For example, if you are a lone parent and your income support has stopped because your child has turned 5, you will need to claim the DWP benefit for yourself and your child, so your benefits will stop.

READ MORE State pensioners waking up to free £150 payment that's 'automatic'

Some people are worse off as a result of claiming Universal Credit. The only transitional element to make up for the loss of income is for severely disabled claimants who were getting an extra amount in legacy benefits, the DWP guidance stipulates.

Some people may find they are not entitled to Universal Credit but making the claim causes tax credits to end and they cannot be reinstated. Some changes do not cause your tax credits to end, so you do not have to claim the benefit.

For example, if you are already getting Child Tax Credit and you start work, you can claim Working Tax Credit and do not have to claim Universal Credit. A spokesperson for DWP said: "Tax credits are closing in April 2025 and customers must respond to their migration notices to continue receiving benefits. Those affected have three months from the date on their migration notice to apply for Universal Credit.

"Customers do not need to take action until they receive their migration notice letter from the Department from Work and Pensions."