UK benefits will be replaced by Universal Credit

The government announced major changes to the welfare system yesterday. These reforms aim to help people find jobs and improve the current system, which officials claim is not working well. Starting in April, Universal Credit will start replacing several benefits. This includes Tax Credits, Income Support, and Housing Benefit, among others. Millions of benefit claimants will feel the effects of these changes. The government plans to raise the standard Universal Credit allowance by £775 annually by 2029. However, the health element allowance will be nearly cut in half for new claimants, while current recipients will see no increase until 2029. According to the Institute for Fiscal Studies, around 2.4 million families could receive £280 less per year, while 4.5 million might gain £150 more annually by 2029. New eligibility criteria for Personal Independence Payment (PIP) will also be introduced. In addition, the government is considering merging jobseeker’s allowance and employment support allowance into a new "unemployment insurance." They plan to move all claimants from old benefits to Universal Credit by 2026. The Department for Work and Pensions (DWP) is sending migration notices to people who currently receive legacy benefits. Recipients must apply for Universal Credit within three months to avoid losing their current payments. Tax Credits will be phased out starting on April 5, 2025. The DWP has assured people they do not need to take action until they receive their migration notice. The final phase of the benefit transition will be completed in 2026, marking the end of a long process that started in 2013.