People receiving Child and Working Tax Credits, Jobseeker’s Allowance (JSA), Income Support, and Housing Benefit now have a two-year deadline to switch to Universal Credit or risk losing their benefits. The government had hoped to end these benefits earlier in 2022, but plans were pushed back due to the Covid-19 pandemic. The government revisited these plans in May of this year, and the deadline has now been pushed back to the end of 2024. The new deadline will bring an end to all five of the previously mentioned benefits. Employment and Support Allowance (ESA), which will be combined with Universal Credit, will be phased out in 2028. The DWP has long desired to conclude these advantages, citing their “complex and efficient systems based on ageing and inflexible IT.” Universal Credit has been promoted as a more modern, digital’ and user-friendly system. Former Work and Pensions Secretary Thérèse Coffey stated, “Over five million people are already supported by Universal Credit.” It is a dynamic system that adapts as people earn more or less, and it simplifies our safety net for those who are unable to work. “Parliament voted in 2012 to end the complex web of six legacy benefits, and as this work nears completion, we are fully transitioning to a modern benefit fit for the twenty-first century.” When new claimants apply for benefits, they are automatically enrolled in the Universal Credit system. However, some people who began claiming benefits before Universal Credit was introduced in 2013 and have not yet made the switch continue to claim these benefits separately. Those receiving these benefits must apply for Universal Credit on time or risk losing access to them after 2024. When they apply for Universal Credit, their previous payments will be terminated automatically. Claimants who make the switch may face a five-week wait between the end of their old benefits and the start of their Universal Credit benefits. Those receiving certain legacy benefits do not have to wait until they are notified to be transferred to Universal Credit; they can do so at any time. Anyone who believes they would be better off on UC can make the switch right away.
