The Department for Work and Pensions (DWP) is accelerating its sweeping welfare overhaul, with a firm deadline now set for the final phase of moving claimants from older benefits onto the Universal Credit system. The department aims to complete the transfer of everyone claiming income-related Employment and Support Allowance (ESA) by March 31, 2026.
The Final Push: From Legacy Benefits to Universal Credit
Universal Credit has already replaced a host of legacy benefits for millions across the UK, including most Tax Credits, Income Support, income-based Jobseeker's Allowance, and Housing Benefit claims. The notable exception is Housing Benefit for those in supported or temporary accommodation, who can still claim it separately.
The current focus is on income-related ESA, one of the last major benefits to be absorbed into the single monthly payment. The DWP has stated that claimants should have received their "migration notice" in the final months of 2025. This crucial letter explains the process and provides a three-month deadline to make the switch. Failure to act within this window will result in existing benefit payments being stopped.
Financial Impact and Transitional Protection
According to DWP estimates, 55% of people will be better off financially after moving to Universal Credit, while 35% will see their income reduced. The remaining 10% will experience no change in their award amount.
For those who would be worse off, a key safety net exists. Monthly transitional protection payments will be provided to cover any shortfall. This top-up will continue until there is no longer a difference between the new Universal Credit award and the previous legacy benefit amount, or until a change in circumstances alters the calculation.
It is vital to understand that this transitional protection is only guaranteed for those who wait for the DWP's "managed migration" process and do not apply for Universal Credit voluntarily before receiving their migration notice.
Navigating the Switch: Payments and Allowances
Claimants should prepare for a potential gap in income. The first Universal Credit payment typically arrives after a five-week assessment period. To help bridge this gap, some legacy benefits, including income-related ESA, will "run on" for an additional two weeks after the claim is made.
Universal Credit is composed of a standard allowance, with additional elements for circumstances like having children, caring for someone, or having a disability that limits capability for work. The system also includes a taper rate for those in work: for every £1 earned above a work allowance, 55p is deducted from the maximum Universal Credit payment.
The work allowance itself varies: it is £411 per month for those who also receive help with housing costs, and £684 per month for those who do not.
Key Universal Credit Standard Allowance Rates (Monthly):
- Single, under 25: £316.98
- Single, 25 or over: £400.14
- Joint claimants, both under 25: £497.55
- Joint claimants, one or both 25 or over: £628.10
Additional Elements Include:
- Child element (rates vary based on birth date and disability)
- Limited capability for work element: £158.76 or £423.27
- Carer element: £201.68
- Childcare costs support (up to £1,768.94 for two or more children)
The move marks the culmination of a decade-long shift in the UK's welfare landscape, centralising support through the digital Universal Credit platform. Claimants affected by the ESA migration are urged to respond promptly to their migration notice to ensure continuous support and access to any transitional protection they are entitled to.
