DWP names ‘next’ benefit to be axed with 400,000 people having payment stopped (Image: )
Countless individuals are being prompted to keep an eye out for crucial Universal Credit correspondence as a benefits cut looms. The Department for Work and Pensions (DWP) is orchestrating the transition of claimants from old-style legacy benefits to Universal Credit by 2026 through “managed migration”.
Presently, approximately 83,000 letters are dispatched monthly with the goal of reaching all remaining income-related Employment and Support Allowance (ESA) recipients by September 2025. Already, 200,000 ESA beneficiaries have made the leap to Universal Credit, yet another 400,000 are poised to follow suit. Universal Credit is set to consolidate six former welfare benefits, colloquially known as legacy benefits.
These include working tax credit, child tax credit, income-based jobseeker’s allowance, income support, income-related employment and support allowance, and housing benefit. If you currently receive any of these benefits, you have the option to switch to Universal Credit, but it may not be financially advantageous.
It’s vital to deliberate on the implications for your finances before making the change, as there’s no turning back once you’ve switched to Universal Credit. To assess your situation, consider using a free online benefits calculator provided by charities like Turn2Us and EntitledTo, which can offer a helpful comparison, reports Birmingham Live.
Transitional protection aids your transition to Universal Credit. If you qualify, this protection allows you to receive a transitional protection payment in addition to your Universal Credit entitlement if your previous tax credits or benefits were higher. This is referred to as the ‘transitional element’.
This implies that you could apply for Universal Credit and possess money, savings and investments exceeding £16,000 for 12 assessment periods if you transitioned from tax credits. This is termed the ‘transitional capital disregard’. Furthermore, it enables you or your partner, if you are a full-time student in higher education, to claim Universal Credit until the completion of the course. This is known as the ‘transitional student disregard’.
Residents of UK village hit with tax rise of almost 3,000%
Central Bedfordshire has seen council tax rates increase over 8% on average from last year (Image: Getty)
A UK village has been hit with tax rises of almost 3,000% as local authorities exploit a legal loophole to raise rates. Though town halls are only able to raise council tax rates by 4.99% each year without the approval of central government, the law puts no such limit on how much parish councils can increase their precept by.
In Aspley Guise, a village in Bedfordshire, the parish council passed on a 2,792% tax rise which came into force last month. A Band D property in the area would have seen the precept soar from £3.73 in 2024 to £105.52 this year as a result. Officials in the village said the rise represented a return to normal levels after the rate fell from £90.74 in 2023, at a time when the parish council had significant cash reserves.
Across Somerset, parish precepts increased by almost 15% (Image: Getty)
Across Central Bedfordshire, where Aspley Guise is located, parish council precepts averaged £157.79 for the 2025/26 financial year, a jump of 8.4% on the previous year.
Nationally, households in a third of local authorities have seen their council tax bills rise above the legal cap because of town and parish council precept increases, The Telegraph reported.
John O’Connell, chief executive of the TaxPayers’ Alliance, told the newspaper: “Taxpayers are being stung by soaring council tax bills, with some parish councils hiking charges far beyond what most would consider reasonable.
“These hikes are slipping through the net with little scrutiny, pushing up costs for residents already feeling the squeeze. Ministers must ensure all layers of local government are held to account and that these loopholes are closed.”
It comes as record numbers of councils applied to the Government for permission to raise rates by more than the 5% cap.
Deputy Prime Minister Angela Rayner has allowed a number of authorities to surpass the cap, including Bradford, Newham, Windsor and Maidenhead, Somerset and Birmingham.
The move means three million households face rises of up to 10%, with some councils now charging rates of over £2,500.
In Somerset, parish precepts averaged £185.69 for the coming financial year, an annual increase of 14.9%.
Parish councils are the first rung of local government and can be involved in the running of community services, including leisure centres, bus shelters, and allotments.
Over 8,000 parish and town councils are spread across England, with almost 100,000 councillors serving within them.
They have raised taxes by 7.4% this year and are set to collect a record £858 million from taxpayers in the 2025/26 financial year, more than double the total tax take netted for these authorities ten years ago.
