Major alterations are on the horizon for Universal Credit in the upcoming year, potentially affecting a considerable number of recipients.
Universal Credit is utilized by over eight million individuals in the United Kingdom and is administered by the Department for Work and Pensions (DWP).
The modifications entail an increase in the standard allowance, which serves as the fundamental amount provided in Universal Credit before any supplementary payments or deductions are factored in.
Conversely, there are substantial reductions slated for the health-related component concerning new Universal Credit applicants.
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The majority of the older legacy benefits are being substituted by Universal Credit, with all individuals expected to transition by the conclusion of March 2026.
Universal Credit is taking over from Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit.
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