DWP confirms Universal Credit top-up payments as six benefits are axed forever
The Department for Work and Pensions (DWP) has explained how some people will receive new top-up payments as it plans to scrap six benefits by 2028.
The DWP is currently shifting people from older-style benefits to Universal Credit. The process, known as managed migration, has been happening slowly over several years. People on older benefits in certain parts of the UK have been told they will be moved over and may need to make a Universal Credit claim.
The process was paused in 2020 due to the Covid-19 pandemic but restarted in mid-2022. People on these six benefits are being gradually moved over to Universal Credit through managed migration:
Working Tax Credit
Child Tax Credit
8 money changes coming in February including Universal Credit and passport fees
Income-based Jobseeker’s Allowance (JSA)
Income Support
Income-related Employment and Support Allowance (ESA)
Housing Benefit
If you're part of the managed migration, the DWP will send you a letter. This letter will tell you that you have three months to apply for Universal Credit. If you don't make a claim within this time, your old benefit payments will stop.
The Government has said most people in the UK will be moved from old benefits to Universal Credit by the end of the 2024/25 financial year. This doesn't include those who only claim ESA and do not get Tax Credits, who will be moved over by 2028.
The DWP has said transitional payments will be available for those who are worse off on Universal Credit. The extra money from transitional protection will slowly go down as your Universal Credit goes up, keeping your benefits at the same level as when you first switched. New payments have now started for people who are being moved over from JSA, ESA or Income Support.
The new amounts are as follows:
- Additional amount for EDP (enhanced disability premium) for single claimant: £84, rising to £89.63 from April
- Additional amount for EDP for a couple: £120, rising to £128.04 from April
- Additional amount for DP (disability premium) for single claimant: £172, rising to £183.52 from April
- Additional amount for DP for a couple: £246, rising to £262.48 from April
- Additional amount for disabled children: £177, rising to £188.86 from April
Other transitional payments already in place are:
- Transitional SDP element if LCWRA incapacity payment (limited capability for work and work-related activity) is included in your Universal Credit: £132.12, rising to £140.97 from April
- Transitional SDP element if LCWRA not included: £313.79, rising to £334.81
- Transitional SDP element (for joint claimants on the higher rate of severe disability premium): £445.91, rising to £475.79 from April
The top-up stops if you're single and start living with someone, if you stop living with a partner, or if your Universal Credit rises by more than the extra amount you're receiving and cancels it out. Also, the top-up will be removed if you stop claiming Universal Credit or if you earn less than the administrative earnings threshold (AET) for more than three months.
Warning as millions on Universal Credit could miss out on hundreds of pounds
The AET is the minimum you must earn if you have to work while claiming Universal Credit and is currently £494 per month for one person and £782 per month for a couple. If you don't qualify for Universal Credit for up to three months because you're earning too much, you might be able to get the top-up reinstated when you can start claiming it again.
Read more similar news:
Comments:
comments powered by Disqus
