The Department for Work and Pensions (DWP) has announced the end of six major social benefits, which will mean a major shift for thousands of recipients.
DWP to Phase Out Six Legacy Benefits and Will ‘Formally Close’ Payments
By Arezki AMIRI
Published on 14 November 2024 10:29
The UK’s Department for Work and Pensions (DWP) has confirmed a significant shift for recipients of certain legacy benefits, announcing a final migration to Universal Credit with an anticipated completion by March 2026.
This move, part of an extended plan to simplify and streamline the welfare system, will impact a wide range of claimants who currently rely on income-related Employment and Support Allowance (ESA), Income Support, Jobseekers Allowance, Housing Benefit, and Tax Credits.
The Migration Process: What’s Next for Claimants?
Starting in early 2024, the DWP will begin issuing 63,000 migration notices monthly to ESA recipients, alerting them to transition to Universal Credit. This follows a managed migration plan initiated in 2022, which has so far moved nearly one million households onto the updated benefits' system. Notices will continue through December 2025, with the expectation that legacy benefits will no longer be active by March 2026.
The transition to Universal Credit aims to create a more integrated benefits system, as officials believe the consolidated payment method provides improved incentives and support for claimants entering the workforce or increasing their hours.
Legacy Benefits to Be Formally Closed by 2026
Under the new structure, the legacy benefits set for phase-out include:
- Child Tax Credit
- Working Tax Credit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseekers Allowance
- Income Support
- Housing Benefit
Those affected will receive an official “migration notice” from the DWP, indicating the date by which they must claim Universal Credit. Changes in a claimant's personal situation—such as moving to a new council or a change in marital status—will also trigger this transition.
The DWP’s end goal is to formally conclude the Move to Universal Credit program by March 2025, creating a one-year buffer period before all legacy benefits are phased out. Universal Credit recipients are encouraged to check their eligibility and monitor updates from the DWP, especially if they currently receive one of the legacy benefits set to be replaced.
How Will Universal Credit Reshape the UK’s Benefits?
While the migration has been met with mixed feedback, officials highlight the potential for Universal Credit to reduce administrative hurdles and offer enhanced support structures. For recipients, the consolidated system is intended to provide streamlined access to financial assistance while supporting the government’s focus on employment incentives.
For many, this transition marks a significant adjustment, as Universal Credit becomes the primary vehicle for benefits delivery in the UK. By 2026, all qualifying claimants will have adapted to the new structure, closing a chapter on the previous benefits system while pushing forward with the DWP’s vision for a modernized welfare system.