DWP warning as key letter going out about major change to benefits

An MP raised concerns that people could struggle to pay their bills during the change.

By Nicholas Dawson, Finance Reporter based in London, covering personal finance with a focus on the state pension and retirement planning.

A woman checks her bills

The DWP is writing to benefits claimants (Image: GETTY)

The DWP has issued an update as it writes to hundreds of benefits claimants about a major change to their payments.

The department is writing to people on Housing Benefit who are being moved on to Universal Credit.

Liberal Democrat MP, Sarah Olney, asked the Government for an update on the programme and what steps the Government is taking to reduce hardship, debt and eviction risks during the process.

Social security minister, Stephen Timms, said the DWP had started sending out the migration notice letters on July 17.

He said: "DWP has processes in place within Universal Credit to help reduce hardship, debt and risk of eviction.

"For example, people who receive Housing Benefit and then claim Universal Credit will receive a two-week run on of their housing payment while they transition to Universal Credit Housing Payment.

"Universal Credit customers who require support to adapt to Universal Credit can also have their housing costs paid directly to landlords through an Alternative Payment Arrangement."

Once you have received a migration notice, you will need to apply for Universal Credit within three months to continue to receive your benefits.

A woman checks her bills

The DWP is writing to benefits claimants (Image: GETTY)

Universal Credit is gradually replacing these benefits:

  • Child Tax Credit
  • Housing Benefit
  • Income Support
  • Income-based Jobseeker’s Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Working Tax Credit.

The Government is also considering changing or replacing the work capability assessment which determines if a claimant is fit to work.

Mr Timms previously gave an update on the plans, saying that ministers would be "putting in place a proper plan to support disabled people into work".

He said: "We will also give disabled people the confidence to start working without fear of an immediate benefit reassessment if it does not work out.

"More disabled people and those with health conditions will be supported to enter and stay in work, by devolving more power to local areas so they can shape a joined-up work, health, and skills offer that suits the needs of the people they serve.

"These plans are central to our missions of kickstarting economic growth and breaking down barriers to opportunity."

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