The Department for Work and Pensions (DWP) intends to abolish the earnings-related Employment and Support Allowance (ESA) two years ahead of schedule, with the announcement of a major policy change.
DWP to Stop ESA Early and Transfer 1.6 Million People to Universal Credit
By Chourouk Derkaoui
Published on 5 November 2024 17:13
The Department for Work and Pensions (DWP) plans to scrap one benefit two years earlier than planned. Income-related Employment and Support Allowance (ESA) is being scrapped sooner, according to DWP.
The DWP's early end to ESA and transition to Universal Credit
The DWP urged households to switch to Universal Credit in place of the earnings-related ESA. Initially, it was planned that by the end of 2028, all ESA recipients would switch to Universal Credit.
Income-related ESA and other residual benefits were to be replaced by Universal Credit. However, Labour Party Chancellor Rachel Reeves said in her Autumn Statement that all income-related ESA claims would now expire in April 2026.
Actual statistics and financial implications
In August 2023, 1 600 000 individuals were receiving Employment and Support Allowance (ESA) marking a decrease of 89 000 compared to the year.
The Budget documents added: “This move will bring more people into a modern benefit regime, continuing to ensure they are supported to look for and move into work. Around half of ESA claimants will receive more financial support on UC, while others will receive transitional protection to ensure nobody is worse off at the point at which they move over to UC.”
Households will therefore not be able to renew their income-related ESA claim from 2026. Families will no longer receive benefits until they convert to Universal Credit.
Migration Management Process
Through a process known as controlled migration, efforts are underway to transfer all two million recipients of legacy benefits to Universal Credit by the end of March 2025.
Citizens Advice explained: “The Department for Work and Pensions are stopping some people’s benefits and telling them to claim Universal Credit instead. If you get a letter telling you to claim Universal Credit by a certain deadline, this is a ‘migration notice’. You should claim Universal Credit by the deadline in the migration notice. Your old benefits will stop after the deadline.”
The charity group said: “You might miss out on some money if you apply after the deadline.”