The Department for Work and Pensions (DWP) has accelerated its timetable to end a key benefit currently claimed by hundreds of thousands of people across the UK. Income-related Employment and Support Allowance (ESA) is being phased out and replaced by Universal Credit, with the final migration date now brought forward.
What is Changing and When?
The managed migration of approximately 800,000 claimants who receive either income-related ESA alone or alongside Housing Benefit has been expedited. This process was previously delayed until the period between 2028 and 2029 but is now being completed much sooner.
The DWP began sending out formal migration notices to this group in September 2024, with the aim of contacting everyone involved by December 2025. The department plans to move all legacy benefit claimants onto Universal Credit by 31 March 2026. This date will mark the end of income-related ESA as a standalone benefit.
Critical Deadlines for Current Claimants
If you are already receiving income-related ESA, you can continue to do so until you are contacted directly by the DWP. You will receive a Managed Migration Notice letter inviting you to make a claim for Universal Credit.
It is vital to understand the timeline: your existing income-related ESA payments will stop three months after the date on your migration letter. To ensure your financial support continues without interruption, and to qualify for transitional protection which safeguards your payment level, you must submit your Universal Credit claim before this three-month deadline.
A crucial warning: if you choose to apply for Universal Credit before receiving your official migration notice, you will forfeit the right to this extra financial support through transitional protection.
Understanding the Scale and Impact
The latest official figures show that 650,000 people were claiming income-related ESA in August 2024. This represents a decrease of 75,000 from the previous year, as the migration process has already been underway.
The shift to Universal Credit is a significant change. It is important to note that if you or your partner currently receive other legacy benefits, such as Housing Benefit, these will also cease when you make a claim for Universal Credit. The new system is designed to consolidate multiple payments into one.
For those concerned about work, you can still receive ESA if you are engaged in "permitted work", but the rules under Universal Credit may differ, making it essential to seek specific advice when you migrate.
The final stages of the government's long-term welfare reform are now in motion. All affected claimants are urged to act promptly upon receiving their migration letter to secure their financial support under the new Universal Credit system.
