Major DWP advantages shakeup might prices 1000’s of UK households £200
The DWP is phasing out older so-called ‘legacy benefits’, thousands of households have been informed they will need to reapply for benefits by April of face losing 100s of pounds
UK households in their thousands have been told they need to reapply for their benefits due to a significant overhaul by the government.
The Department for Work and Pensions (DWP) is gradually eliminating older so-called ‘legacy benefits’, of which there are six in total. These benefits are being replaced by Universal Credit as part of the government’s ‘Migration Plan’.
The first ‘legacy benefit’ to be phased out is Tax Credits, which will be replaced in April this year. Thousands of letters are being sent out ahead of the change, providing households with a three-month warning.
Once claimants of Tax Credits receive this letter, they’ll have three months to make a claim for Universal Credit. If they fail to do so, their current payments will cease.
Tax Credits can be worth up to £2,435 annually, or an estimated £202 monthly. The other ‘legacy benefits’ on the list include Child Tax Credits, Income-based Jobseeker’s Allowance (JSA), Income Support, Housing Benefit, and Income-related Employment and Support Allowance (ESA), reports Birmingham Live.
The DWP’s Managed Migration strategy was restarted in 2022 and further revamped in September 2024. All those claiming legacy benefits will receive migration notices by the end of this year.
Over the next 12 months, hundreds of thousands of letters will be sent out. The benefits department aims to completely phase out all legacy benefits by the end of March 2026.
Despite these changes a number of bonus payments are being issued to help low-income households cope with cost of living pressures.
These schemes are designed to help those most likely concerned with heating pressures during the cold winter months.
One of these schemes is the Warm Home Discount that will knock £150 off of energy bills for only one time.
Another support payment is the Household Support Fund in which people struggling with cost of living pressures can apply for payments worth up to £200 in some areas.
Applicants will have to show that they are struggling to afford essentials like food, water and energy. Individuals that are currently receiving benefits are eligible for this scheme.
