People on PIP and ESA warned to take action or see payments stopped by Christmas

People receiving Personal Independence Payment alongside income-related Employment and Support Allowance (ESA) are being warned they could face a payment cut in months.

ESA claimants must make the move to Universal Credit before the three-month deadline given in the DWP Migration Notice they are sent in the post - or they will see their old benefits terminated, leading to a significant and immediate income drop.

Around 90,000 people receiving income-related ESA alongside Child Tax Credit were sent letters in July. This month (September), letters started to be sent to 800,000 people claiming income-related ESA either on its own or with Housing Benefit, meaning that people will need to act by Christmas for their payments to continue.

Income-related ESA is for people who have limited capability for work because of disabilities or long-term health conditions. Many receive it with Personal Independence Payment (PIP) which isn't affected by the changeover and continues as normal. However, concerns have been expressed that many ESA claimants are vulnerable and may need help making the transition to Universal Credit.

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The Child Poverty Action Group says some disabled people have already found the benefit changeover a challenge. In a report published earlier this year, it said: "Some tax credit-only claimants have additional needs and struggled with the process of managed migration. Through evidence collated as part of our research we know that some claimants have difficulties dealing with unfamiliar demands, uncertainty, stress and change. Other claimants will, because of their vulnerabilities, find it difficult to open or understand their migration notice.

"A single working tax credit claimant with mental health problems and in receipt of Personal Independence Payment (PIP) was sent a migration notice a year before she was due to reach State Pension age. She works part-time and received the disabled worker element of Working Tax Credit. She suffers from panic attacks which are often triggered by change. She struggled with the prospect of moving to UC and, through an advice worker, requested a deadline extension.

"A PIP and working tax credit claimant was selected for managed migration. He is in his twenties and lives at home with his parents. He has significant mental health problems and can only work part-time. He needed significant support from his parents and a local advice charity to make a UC claim.

"A tax credit claimant with mental health problems told their benefits adviser that they were thinking of not going ahead with a UC claim because they simply couldn’t cope. They were getting 'a fair amount' in tax credits each month but the move was daunting enough that they almost didn't go ahead. According to the adviser, they persevered with support in the end."

CPAG went on to point out: "Given the vulnerabilities identified among the tax credit-only claimants described above, indicators of vulnerability must go beyond receipt of ESA. An obvious extension of this is receipt of any disability benefit (like PIP) or disability component."

Those who do successfully make the switch will see their income-related ESA continue for two more weeks to help bridge the gap before their first Universal Credit payment. They can also apply for a Universal Credit advance up to the value of their first expected payment due five weeks later. And if they move only when told to do so in a Migration Notice letter, their Universal Credit payments will be matched to what they were on before by a top-up called transitional protection.

All those on the legacy benefits that Universal Credit is replacing are expected to have been sent letters by December 2025, with the aim that these elements of the welfare system will be abolished by the end of the 2025/2026 financial year.

It's important to note that contribution-based ESA, known in its current form as New Style ESA, isn't being scrapped because it is based on National Insurance contributions rather than being a means-tested benefit.

So anyone on this type of ESA who moves on to Universal Credit will see their payments continue separately but the ESA amount will be deducted from their new Universal Credit payment. Some people on New Style/contribution-based ESA will have to move to Universal Credit if they are also claiming a legacy benefit that's being abolished, such as Income Support or Child Tax Credit.

The Universal Credit Migration Notice helpline is available on 0800 169 0328 if you need support with moving across from your legacy benefits. The helpline is open Monday to Friday, from 8am to 6pm. You can also get free assistance from the Citizens Advice Help to Claim service.

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