A significant overhaul of Universal Credit is on the horizon for next year, with potential implications for millions of recipients.
Universal Credit is currently accessed by over eight million individuals in the United Kingdom and is administered by the Department for Work and Pensions (DWP).
Among the imminent adjustments is an increase in the standard allowance, which serves as the fundamental payment in Universal Credit before any supplementary contributions or deductions are factored in.
However, there are also substantial reductions anticipated in the health-related component for new claimants of Universal Credit.
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The transition to Universal Credit is gradually phasing out most of the older legacy benefits, with the final migration expected to conclude by March 2026.
Universal Credit is set to replace Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit.
Individuals required to transition to Universal Credit will receive a “migration notice” via mail, providing a three-month window to initiate their Universal Credit claim.
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