Major Welfare Reform: ESA Claimants to Move to Universal Credit
The Department for Work and Pensions has officially confirmed its timeline for one of the most significant welfare reforms in recent years. The department plans to complete the migration of all claimants on income-related Employment and Support Allowance to Universal Credit by March 2026, marking a crucial milestone in the government's overhaul of the benefits system.
Protections for Vulnerable Claimants
The announcement came in a written response from Sir Stephen Timms, Minister for Social Security and Disability, to queries raised by Labour MP Amanda Martin. The Portsmouth North MP had specifically questioned whether disabled claimants receiving Personal Independence Payment and legacy benefits would face reduced income when transferred to the new system.
Sir Stephen provided reassurance, stating: "To protect any claimants who have not migrated by April 2026 we intend to mirror as closely as possible the changes made in Universal Credit in the ESA rates." This means that changes to the support component and disability premia will reflect adjustments to Universal Credit LCWRA rates for existing claimants.
The minister emphasized that these commensurate measures aim to ensure fair treatment for all customers moving onto Universal Credit from income-related ESA, regardless of when their migration occurs.
Broader Welfare Reforms and Support Measures
Alongside the migration timeline, the DWP has unveiled several significant reforms. The Universal Credit Bill, which successfully passed through the House of Lords in July and awaits Royal Assent, will create what the department describes as "the largest permanent real terms rise to the main rate of out-of-work support since 1980."
According to DWP estimates, nearly four million households will receive an annual income increase estimated at £725 under the new legislation. The reforms will ensure the Universal Credit standard allowance rises permanently above inflation, reaching £725 by 2029/30 for a single person aged 25 or above.
Perhaps most notably, the department has introduced a 'Right to Try Guarantee' that allows those receiving health and disability benefits to attempt work without fear of reassessment. This measure specifically supports individuals with disabilities or health conditions who wish to return to work as their health improves.
Additional protections include guaranteed inflation-linked increases for recipients of the Universal Credit Health Element and new customers with 12 months or less to live or who meet the Severe Conditions Criteria from 2026/27 to 2029/30.
The DWP is also placing disabled people at the centre of a ministerial review of the PIP assessment, led by Disability Minister Sir Stephen Timms and co-produced with disabled people and representative organizations. This review, part of a £3.8 billion investment in employment support for sick and disabled people, aims to ensure the assessment process is fair and fit for the future.
