The UK’s welfare system is entering its final phase of transformation as the Department for Work and Pensions (DWP) confirms that six long-standing income-related benefits will be discontinued by March 2026. This is part of a nationwide move to consolidate financial support under the Universal Credit (UC) system, which has been progressively replacing older programs since 2013.
Transition to Universal Credit Reaches Final Stages
Universal Credit was introduced to streamline a complex network of overlapping benefits into a single, more manageable system. By eliminating administrative duplication and reducing the risk of error, UC aims to simplify the process for both the government and claimants. More than 2.6 million households are expected to have moved to Universal Credit by the end of 2025. A large number of recipients have already been migrated, especially those receiving tax credits, Jobseeker’s Allowance (JSA), and Income Support.
Now, the focus has shifted to the remaining groups, particularly those receiving more complicated combinations of benefits, such as Employment and Support Allowance (ESA) and Housing Benefit. These individuals are now receiving official migration notices, which give them a strict three-month deadline to apply for Universal Credit. Failure to act in time will result in a complete loss of benefits.
Six Benefits Being Phased Out Completely
The DWP has officially listed six benefits that will be permanently replaced by Universal Credit. These payments are being phased out due to outdated administrative structures and significant overlaps in eligibility. While new applicants have already been directed to UC for several years, existing beneficiaries are now undergoing the final transition process.
Legacy Benefits Being Replaced
| Benefit Name | Primary Purpose |
|---|---|
| Child Tax Credit | Support for families with dependent children |
| Working Tax Credit | Supplement for low-income earners |
| Income-based Jobseeker’s Allowance (JSA) | Support for unemployed individuals with limited savings |
| Income Support | Aid for individuals with low income and no job expectations |
| Income-related Employment and Support Allowance (ESA) | Financial help for those unable to work due to medical conditions |
| Housing Benefit | Rent assistance for low-income households |
All six of these programs will be discontinued for recipients once they have successfully transitioned to UC or miss their migration deadline.
Managing the Migration Process
The DWP has been transitioning individuals to Universal Credit in carefully planned stages. What began in 2013 with new applicants gradually expanded to existing benefit claimants by 2019. In the early phases, relatively straightforward cases such as those involving single individuals or simpler employment scenarios were prioritised.
More recently, the DWP has been focusing on recipients with complex needs, including people with disabilities or multiple entitlements. As of mid-2024, the largest remaining groups are those on ESA and Housing Benefit. These recipients are being sent tailored migration notices, informing them of their application deadline. All remaining legacy cases are expected to be migrated by March 2026.
What Claimants Must Do When They Receive a Migration Notice
When a migration notice is received, claimants have three months to submit their application for Universal Credit. These notices contain a deadline and instructions on how to proceed. If no application is made by the stated date, all legacy benefit payments will be terminated with no eligibility for back payment.
To complete the transition successfully:
- Read your migration notice carefully and take note of the application deadline.
- Submit a claim for Universal Credit within the three-month window.
- Prepare required documents, such as ID, income records, housing details, and bank account information.
- If you require help, contact Jobcentre Plus or authorised support providers.
Claimants should be aware that inaction does not trigger an automatic transfer. Missing the deadline results in complete cessation of payments and may require a new claim without financial protection.
Financial Protections During the Transition
One key safeguard built into the managed migration process is transitional protection. This feature ensures that claimants do not suffer a sudden reduction in income when moving to Universal Credit – but only if they move through the official process within the allowed timeframe.
Transitional protection maintains previous payment levels temporarily by topping up the new UC award. Over time, however, this buffer may decrease or be removed entirely, especially if the household experiences changes such as a new job or increased income. Those who miss the migration deadline or switch voluntarily are not eligible for this top-up support.
Groups Still Receiving Legacy Benefits
Although many claimants have already been moved to Universal Credit, a large number remain on legacy benefits especially those with health-related needs or digital accessibility barriers. Current estimates as of early 2025 suggest the following:
| Benefit Type | Estimated Recipients |
|---|---|
| Employment and Support Allowance | Over 900,000 |
| Housing Benefit (non-UC cases) | Over 1.6 million |
| Income Support | Around 200,000 |
| Income-based Jobseeker’s Allowance | Approximately 100,000 |
| Tax Credits | Largely migrated already |
Altogether, more than 2.8 million individuals could still be awaiting migration to UC. The DWP is working to ensure that these groups receive the information and support they need, including accessible services and helpline assistance.
Crucial Reminders and Additional Information
As the final stages of migration proceed, claimants should take note of these important considerations:
- Keep your contact details updated with the DWP to avoid missing critical letters.
- Claimants with Severe Disability Premiums may be eligible for additional protection.
- No response to a migration notice will result in a permanent loss of benefits.
- Support is available for those who cannot access digital services.
Universal Credit also operates on a different monthly payment cycle, so claimants should familiarise themselves with the new schedule, reporting obligations, and how to manage changes through their online UC account.
The Final Phase of the UK Welfare Reform
The complete withdrawal of six legacy benefits by March 2026 marks a major milestone in the UK’s benefits overhaul. Universal Credit is designed to deliver a more flexible, transparent, and streamlined approach to financial support. But the success of this change depends on active participation by recipients.
Those still receiving ESA, Housing Benefit, or other phased-out payments must take action as soon as they receive their migration letter. Delaying the transition could lead to a permanent end of support.
The DWP continues to issue guidance, offer resources, and provide personalised assistance to ensure no eligible claimant is left behind during this final phase of the Universal Credit rollout.