DWP 'speeds up' axing benefit with people told 'claim Universal Credit instead'

The Department for Work and Pensions is speeding up changes to Universal Credit with a key benefit being axed by the government. Income-related Employment and Support Allowance (ESA) is being replaced by Universal Credit.

The Labour Party government and DWP has revealed all claims will end two years earlier, by April 2026. Budget documents in the wake of Chancellor Rachel Reeves' landmark address in the Commons revealed: "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." It means after April 2026, you won't be able to put in a new claim for ESA.

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Instead, anyone currently claiming this benefit will be told to apply for Universal Credit instead. In April 2024, the DWP began a process of managed migration to transfer all remaining legacy benefits recipients onto Universal Credit. So far, the managed migration has focused on Income Support or Child Tax Credits claimed in combination with other legacy benefits such as Employment and Support Allowance (ESA) and Housing Benefit.

From September 2024, the managed migration of Job Seeker Allowance (JSA), and all other legacy ESA claims (originally scheduled for 2028) will begin. The DWP says managed migration is the best way for claimants to transfer from legacy benefits and avoid losing out on any transitional protection payments. However, it is possible that people affected by managed migration from legacy ESA may need extra support to navigate the process.

Managed migration notices will be sent to legacy claimants by post, and on receipt the legacy ESA claimant needs to initiate their migration process within three months of the date of the notice, and before the stipulated deadline day.