Significant changes are on the horizon for Universal Credit next year, affecting a large number of claimants across the UK.
Universal Credit, managed by the Department for Work and Pensions (DWP), supports over eight million individuals in the country and serves as a crucial financial aid system.
Among the modifications are adjustments to the standard allowance, which represents the fundamental payment in Universal Credit before any supplementary disbursements or deductions are factored in.
However, there are impending reductions in the health-related component for new Universal Credit applicants, impacting the overall benefit structure.
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The transition to Universal Credit is progressively replacing most older legacy benefits, with the final migration expected to conclude by March 2026.
Notably, Universal Credit is taking over Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit.
Individuals required to shift to Universal Credit will be notified through a “migration notice” sent by mail, detailing a three-month period to initiate the claim process.
Certain circumstances permit the continuation of old benefits, such as the continued eligibility for Housing Benefit in supported or temporary housing situations.
Starting from April, the Universal Credit standard allowance will witness a 6.2% increment, surpassing the inflation rate. For