DWP to scrap 6 benefits by 2024 including Housing Benefit and Child Tax Credit in Universal Credit rollout
The changes are set to affect millions of benefit claimants when they kick in from 2024
The Department of Work and Pensions (DWP) is set to axe six benefits by 2024. Among the benefits that will come to an end are Housing Benefit and Child Tax Credit.
The changes will result in millions of claimants being moved over to Universal Credit, which is gradually phasing out remaining “legacy” benefits such as the ones listed above. The changeover re-launched in May this year after a pause due to the coronavirus pandemic.
Former Work and Pensions secretary Therese Coffey announced at the time that the process to move claimants would be starting again. Anyone affected by the change will be notified and will be asked to start claiming Universal Credit.
Ms Coffey 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."
Full list of benefits that will be replaced by Universal Credit in 2024
- Income-related Employment and Support Allowance
- Income-based Jobseeker’s Allowance
- Working Tax Credit
- Child Tax Credit
- Income Support
- Housing benefit
Why are ‘legacy benefits’ being replaced by Universal Credit?
The DWP has said that legacy benefits are being replaced by Universal Credit due to “complex and inefficient systems based on ageing, inflexible IT”.
The difference between legacy benefits and Universal Credit is that UC is based on one calculation so that, as you move in and out of work, or your income goes up and down, it will just be the amount of UC that changes. With legacy benefits, you may have had to change your claim entirely.
People are encouraged to use a benefits calculator to check their eligibility but it will not always be suitable for claimants to switch to Universal Credit immediately. Those who are unsure have been told to wait to be moved.
A DWP spokesperson said: “The transitional protection top-up payments only apply to claimants moved by DWP, and people cannot reclaim their old benefits after switching to Universal Credit.”