Major changes to the UK benefit system will begin this month with the Department for Work and Pensions admitting that hundreds of claimants will be worse off as a result.
The ‘managed migration’ of people on older style benefit systems to Universal Credit as a result of the Covid pandemic but now as many as 2.6 million Brits will be moved from the six “legacy” benefits starting from next week.
Who will be affected by the benefit system changes?
The plans to move people over to Universal Credit will affect people claiming six types of support.
· Child Tax Credit
· Housing Benefit
· Income Support
· Income-based Jobseeker’s Allowance (JSA)
· Income-related Employment and Support Allowance (ESA)
· Working Tax Credit
Some people may be better off by moving over to Universal Credit and can opt in to change over.
Some people may also be changed over if their circumstances change. For example, if they move to a new address or change working hours.
When will the DWP start the process?
The process was delayed as a result of the coronavirus pandemic with more people claiming government support throughout lockdowns. However it will now begin on Monday, 9th May with the government planning to complete the changes by December 2024.
As a result of the changes the DWP admits approximately 900,000 UK households (35%) will receive less. Meanwhile 1.4 million household could get more money while around 300,000 should see no change at all.
DWP changes will see ‘hundreds of thousands’ of people worse off
Sophie Corlett, from mental health charity Mind, warned that UK household will be left worse off by the changes.
She told The Mirror that new plans "could cause hundreds of thousands of people to be worse off" and warned the "the consequences of cutting someone’s benefits can be fatal."
Work and Pensions Secretary Thérèse Coffey defended the changes, she said: “Over five million people are already supported by Universal Credit.
“It is a dynamic system which adjusts as people earn more or indeed less, and simplifies our safety net for those who cannot work.
“Parliament voted to end the complex web of six legacy benefits in 2012, and as this work approaches its conclusion we are fully transitioning to a modern benefit, suited to the 21st century.”
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