Latest news with #ChildTaxCredits
North Wales Live
18 hours ago
- Business
- North Wales Live
DWP to end six benefits by 2026: What Claimants Need to Know
People on certain benefits are being encouraged to take action if they want to keep receiving payments. The Department for Work and Pensions (DWP) is continuing with the phasing out of older benefits for millions this year. A few years ago, the DWP started transitioning individuals on specific benefits, known as legacy benefits, over to universal credit, which was launched in 2013. This process, known as managed migration, has been gradually implemented over several years, with individuals being informed that they would be transitioned and, in some cases, would need to make a universal credit claim, reports WalesOnline. Full-scale managed migration began in April 2023, extending to different regions of Great Britain. The six legacy benefits being phased out include: Child and working tax credit Income-based jobseeker's allowance Income support Income-related employment Support allowance Housing benefit Tax credit is the first of 2025's legacy benefit closures. As per the DWP website, the benefit will cease in April 2025, meaning recipients must respond to their migration notices to continue receiving benefits. Those affected have three months from the date on their migration notice to apply for universal credit. Moreover, the planned transition of approximately 800,000 recipients of income-related employment and support allowance (ESA) alone, or income-related ESA in conjunction with housing benefit, has been expedited. This had initially been postponed to 2028/29. The DWP commenced issuing migration notices to these claimants in September 2024, with the goal of notifying all individuals in this group by December 2025. The DWP intends to transfer all legacy benefit recipients to universal credit by March 2026, finalising the rollout and ceasing all legacy benefits by this date. Here is the full timeline of managed migration: April 2024: Migration notices were sent to households in receipt of Income Support, Income Support with Housing Benefit, and Tax Credits with Housing Benefit. June 2024: Migration notices were sent to households receiving Housing Benefit only. July 2024: Migration notices were sent to households in receipt of Employment Support Allowance with Child Tax Credits. August 2024: Tax Credit claimants who are over state pension age were invited to apply for either Universal Credit or Pension Credit. September 2024: Migration notices began to be sent to claimants of income-based Jobseeker's Allowance (JSA), and those on income related Employment Support Allowance (ESA) without Child Tax Credits. December 2025: The DWP aims to notify all claimants of income-related ESA only, or income-related ESA and Housing Benefit, by this date, a group previously scheduled for migration in 2028/29.
Daily Mirror
2 days ago
- Politics
- Daily Mirror
At least one in four children in poverty in two-thirds of UK areas
Overall, 42% of constituencies in the UK have a child poverty rate higher than the national average of 31%, according to new analysis by Loughborough University At least a quarter of children are in poverty in two-thirds of areas across the UK, grim analysis shows today. Overall, 42% of constituencies in the UK have a child poverty rate higher than the national average of 31%, according to new analysis by Loughborough University. That includes Keir Starmer 's London constituency Holborn and St Pancras, which has a child poverty rate of 47%. Some 80% of the PM's Cabinet represent constituencies with higher than average rates. Constituencies with the highest child poverty rates in the UK include Birmingham Ladywood, Dewsbury and Batley and Bradford West. In the North East, West Midlands and in Wales, around nine out of ten constituencies have a child poverty rate higher than one in four. Experts found an 'extremely high' correlation between child poverty and the two-child benefit limit. The End Child Poverty Coalition, which is made up of over 135 organisations including child welfare groups, social justice groups, faith groups, trade unions and others, has today called for the policy to be scrapped in full. It piles more pressure on Mr Starmer, who is facing demands to scrap the Tory-era policy to lift thousands of kids out of poverty. Experts have said ditching the policy, which restricts parents from claiming Universal Credit or Child Tax Credits for any children beyond their first two, would be the most effective way to live around 350,000 kids out of poverty. Education Secretary Bridget Phillipson, who is co-chairing the government's Child Poverty Taskforce, last month said scrapping the controversial two-child benefit limit is an option "on the table'. The annual analysis by Loughborough University uses DWP figures and looks at poverty rates after housing costs, which is seen as a more accurate assessment of family income. Dan Paskins, of Save the Children and the End Child Poverty Coalition, said: 'Each year this data presents a bleak picture of life for the UK's children. A record number are now in poverty and this is under the noses of our MPs, particularly Cabinet members. 'The time for action is now, and the Comprehensive Spending Review, and forthcoming child poverty strategy should involve bold action." Liv, 21, from Liverpool, who is an End Child Poverty Coalition Ambassador, said: 'Growing up in poverty is relentless, and it's never just about money - it is about isolation, shame, and missed opportunities. 'A proper government strategy on child poverty could give us hope. It shows that our experience is heard, and that there's a commitment to building a fairer society where no child has to grow up feeling less than others just because of their circumstances.' Full list of local authorities' child poverty rates (after housing costs): Region Local authority
Wales Online
3 days ago
- Business
- Wales Online
DWP to scrap six benefits by 2026 as claimants urged to take action
DWP to scrap six benefits by 2026 as claimants urged to take action The Department for Work and Pensions (DWP) is continuing to phase out older benefits this year meaning claimants need to take action The Department for Work and Pensions (DWP) is continuing to phase out older benefits this year meaning claimants need to take action (Image: WalesOnline/Rob Browne ) People receiving certain benefits are being urged to act if they wish to continue receiving payments. The Department for Work and Pensions (DWP) is persisting with the phasing out of older benefits for millions this year. A few years back, the DWP began transitioning individuals on specific benefits, known as legacy benefits, over to universal credit, which was launched in 2013. This process, referred to as managed migration, has been implemented gradually over several years, with individuals being notified that they would be transitioned and, in some cases, would need to make a universal credit claim. Full-scale managed migration kicked off in April 2023, extending to different regions of Great Britain. The six legacy benefits being phased out include: Child and working tax credit Income-based jobseeker's allowance Income support Income-related employment Support allowance Housing benefit Tax credit is the first of 2025's legacy benefit closures. For money-saving tips, sign up to our Money newsletter here . As per the DWP website, the benefit will cease in April 2025, meaning recipients must respond to their migration notices to continue receiving benefits. Those affected have three months from the date on their migration notice to apply for universal credit. Moreover, the planned transition of approximately 800,000 recipients of income-related employment and support allowance (ESA) alone, or income-related ESA in conjunction with housing benefit, has been expedited. This had initially been postponed to 2028/29. The DWP commenced issuing migration notices to these claimants in September 2024, with the goal of notifying all individuals in this group by December 2025. The DWP intends to transfer all legacy benefit recipients to universal credit by March 2026, finalising the rollout and ceasing all legacy benefits by this date. Article continues below Here is the full timeline of managed migration: April 2024: Migration notices were sent to households in receipt of Income Support, Income Support with Housing Benefit, and Tax Credits with Housing Benefit. Migration notices were sent to households in receipt of Income Support, Income Support with Housing Benefit, and Tax Credits with Housing Benefit. June 2024: Migration notices were sent to households receiving Housing Benefit only. Migration notices were sent to households receiving Housing Benefit only. July 2024: Migration notices were sent to households in receipt of Employment Support Allowance with Child Tax Credits. Migration notices were sent to households in receipt of Employment Support Allowance with Child Tax Credits. August 2024: Tax Credit claimants who are over state pension age were invited to apply for either Universal Credit or Pension Credit. Tax Credit claimants who are over state pension age were invited to apply for either Universal Credit or Pension Credit. September 2024: Migration notices began to be sent to claimants of income-based Jobseeker's Allowance (JSA), and those on income related Employment Support Allowance (ESA) without Child Tax Credits. Migration notices began to be sent to claimants of income-based Jobseeker's Allowance (JSA), and those on income related Employment Support Allowance (ESA) without Child Tax Credits. December 2025: The DWP aims to notify all claimants of income-related ESA only, or income-related ESA and Housing Benefit, by this date, a group previously scheduled for migration in 2028/29. The DWP aims to notify all claimants of income-related ESA only, or income-related ESA and Housing Benefit, by this date, a group previously scheduled for migration in 2028/29. March 2026: All legacy benefit claims are scheduled to be closed
Daily Mirror
27-05-2025
- Business
- Daily Mirror
Scrapping DWP two-child benefit limit 'on the table', Phillipson insists
Education Secretary Bridget Phillipson made clear the two-child benefit limit- introduced by austerity Chancellor George Osborne - had pushed kids into poverty Scrapping the controversial two-child benefit limit is an option "on the table", Bridget Phillipson has insisted. The Education Secretary made clear the policy - introduced by austerity Chancellor George Osborne - had pushed kids into poverty. Keir Starmer has previously resisted calls to scrap the measure and seven Labour MPs were suspended for voting against the government last summer over the issue. But reports over the weekend claimed the PM is now open to abolishing the two-child limit, which has been labelled "cruel" by Gordon Brown. Any decision is not expected to be formally announced until the Budget. Experts have said scrapping the policy, which restricts parents from claiming Universal Credit or Child Tax Credits for any children beyond their first two, would be the most effective way to live around 350,000 kids out of poverty. Ms Phillipson's comments came after the government faced a backlash for delaying the publication of a major strategy on tackling grim rates of child poverty. It had been due to report in the coming weeks but has been pushed back to the Autumn to align with the Budget. It is estimated scrapping the two-child benefit limit would cost the Treasury around £3.5billion-per-year. But the Child Poverty Action Group says the policy, which hits children born after April 2017, impacts an extra 100 kids every day. Ms Phillipson, who leads the government's child poverty task force alongside Work and Pensions Secretary Liz Kendall, insisted on Monday it was the "moral mission" of the Labour government to ensure fewer kids grow up in poverty. Pressed on the two-child benefit limit, Ms Phillipson told BBC Radio 4's Today programme: "I've always been clear it is on the table. All elements of the social security system are part of what we're considering as part of the child poverty taskforce." She said: "These are not straight-forward choices, the price tag associated with this is big, but what I would also say when it comes to the price tag, the cost of inaction is also incredibly high because this scars the life chances of children in our country. That's devastating for those children and families but actually for all of us as a society, we miss out on the tremendous contribution and talent of so many people." The Education Secretary added: "What we're talking about today around the two-child limit... we're not changes a Labour government introduced, they are not changes that a Labour government would have ever introduced. But seeking to unwind that and to change the social security system is not easy and it costs a lot of money and we've got to get this right." Ms Phillipson went on: "It will be the moral mission of this Labour government to ensure fewer children grow up in poverty." Describing the impacts of the two-child benefit limit, she added: "I've had conversations with people I represent... who made perfectly reasonable and rational decisions to have a number of children, to have three children say. "Then something terrible happens in their lives. One constituent I met lost their partner, who died unexpectedly. They then find themselves unable to access the full support that they had anticipated for their whole family even when they made what was a perfectly reasonable choice around family size. "The changes to the social security system the Conservatives introduced haven't had an impact on the decisions people are making around family size. All it has done has pushed more children into poverty."
Daily Mirror
26-05-2025
- Business
- Daily Mirror
Labour launches blistering attack on Nigel Farage ahead of major Reform speech
Labour's Ellie Reeves said Reform UK's election manifesto 'included billions of pounds worth of unfunded spending pledges' - as Nigel Farage prepares to announce new commitments Labour has launched a blistering attack on Nigel Farage's "unfunded spending pledges" - as the Reform UK leader prepares for a major speech. Party chair Ellie Reeves accused the ex-UKIP leader, who praised Liz Truss's disastrous mini-Budget, of only caring about his "own self-interest". In a speech on Tuesday, Mr Farage looks set to commit to ending the two-child benefit limit in a brazen attempt to woo Labour voters. The Reform UK leader will say the winter fuel payments should be restored in full after Keir Starmer's U-turn last week in the Commons. Reports over the weekend also suggested he will launch a personal attack on the PM as "one of the most unpatriotic Prime Ministers in our history". But ahead of the speech, Ms Reeves said: ' Nigel Farage, a private-educated stockbroker and career politician, has only ever cared about his own self-interest and personal ambition, never about what is good for working people in this country. "His Reform manifesto included billions of pounds worth of unfunded spending pledges but did not commit to the Triple Lock. Farage must urgently clarify whether he will cut the state pension to pay for his reckless tax cuts. " At the general election last year the Reform UK manifesto was ridiculed. The Institute for Fiscal Studies (IFS) said at the time: "The sums in this manifesto do not add up." Mr Farage's speech comes as Mr Starmer faces mounting pressure over welfare policies and pressure to reverse the two-child benefit limit. The PM faced calls on Monday from senior Labour MP Stella Creasy to reverse the cruel austerity-era policy as she said tackling poverty is in Labour's "DNA". Ms Creasy said removing the two-child benefit limit, which restricts parents from claiming Universal Credit or Child Tax Credits for any children beyond their first two, would lift around 350,00 children out of poverty "overnight". She said struggling families needed a "triple lock", a policy which sees state pension rates go up each year by the rate of inflation, average earnings or 2.5% – whichever is highest. The Walthamstow MP told BBC: "My focus is poverty, because I think it is in our DNA as the Labour movement to try to end that because of the benefits to everybody when we do. I'm really focused on what we can actually do to help those families. "I think we need a triple lock for families too. It's worth remembering we've spent 1% of our social security budget on children, we spent 60% of it on pensioners. That is not to distract from the fact that there are pensioners who are living in poverty, and we absolutely need to tackle that. The point is, when we invest in those families, I think it pays off." The government is looking at the two-child benefit limit as part of a child poverty strategy. A task force had been due to report in the coming month but was delayed last week until the autumn to align with the Budget.
