Millions At Risk As DWP Confirms 6 Benefits Will Be Axed By 2026 – What You Need To Know

Millions At Risk As DWP Confirms 6 Benefits Will Be Axed By 2026 – What You Need To Know

The Department for Work and Pensions (DWP) has officially confirmed that six legacy benefits will be phased out completely by 2026.

This move is part of the government’s long-term plan to transition all benefit claimants to Universal Credit, a streamlined welfare payment designed to simplify the system.

The changes will impact millions of people across the UK, and failure to act could result in payment disruption or loss of financial support. Here’s what you need to know, who is affected, and how to prepare.

What Are the Six Benefits Being Axed?

The DWP will discontinue the following legacy benefits by March 2026:

Legacy BenefitAction Required
Income-Related Employment and Support Allowance (ESA)Move to Universal Credit
Housing BenefitMove to Universal Credit
Income SupportMove to Universal Credit
Child Tax CreditMove to Universal Credit
Working Tax CreditMove to Universal Credit
Income-Based Jobseeker’s Allowance (JSA)Move to Universal Credit

These benefits are being replaced under a structured rollout known as “managed migration.”

Why Is DWP Making These Changes?

The DWP aims to:

  • Simplify the UK benefits system
  • Improve transparency and access for claimants
  • Ensure that everyone receives the correct entitlement under a unified system
  • Encourage employment by streamlining support

What Is Universal Credit?

Universal Credit is a single payment that replaces multiple benefits and provides financial support for low-income individuals and families. It includes allowances for:

  • Living expenses
  • Housing
  • Children
  • Disability or health-related needs

It is paid monthly and adjusted according to income and household circumstances.

Who Is Being Affected and When?

The DWP has issued a detailed timeline for notifying claimants based on the type of benefit they receive. Here’s a breakdown:

DateGroup Affected
April 2024Income Support, Income Support with Housing Benefit, and Tax Credits with Housing Benefit
June 2024Households receiving Housing Benefit only
July 2024ESA recipients also receiving Child Tax Credits
August 2024Tax Credit recipients who are over the state pension age
September 2024Claimants of income-based JSA and income-related ESA without Child Tax Credits
December 2025All income-related ESA and ESA with Housing Benefit claimants to be notified
March 2026All transitions to Universal Credit must be completed

Approximately 800,000 people receiving income-related ESA, either alone or with Housing Benefit, are now scheduled for early migration, with notices already being sent since September 2024.

How Will You Know You’ve Been Selected for Migration?

You will receive a Migration Notice from the DWP. This letter will:

  • Inform you of the end date of your legacy benefit
  • Instruct you to apply for Universal Credit
  • Provide a deadline (typically one month) to complete your application
  • Include details of how to maintain continuous payments

Important: If you fail to respond to your Migration Notice, your payments may stop.

DWP’s Advice to Claimants

The DWP urges all affected individuals to:

  • Check your mail and online messages regularly for migration notices
  • Act promptly once notified to avoid any loss of support
  • Contact DWP or speak to an adviser if you are uncertain about the process

A spokesperson said:

“Our priority is ensuring a smooth transition for all claimants. We urge everyone receiving a migration notice to act promptly to avoid any disruption to their payments.”

What Happens If You Don’t Act?

Failing to respond to your migration notice may result in:

  • Termination of legacy benefit payments
  • Delays in receiving Universal Credit
  • Financial hardship from missed payments
  • Potential backdating restrictions, meaning you may not recover missed support

How to Prepare for the Change

Here’s how you can prepare to protect your benefits:

  1. Set up a Universal Credit account in advance
  2. Gather documents: payslips, rent agreements, ID, utility bills
  3. Update your contact details with DWP
  4. Speak with a benefits advisor for help completing the transition
  5. Respond to your Migration Notice immediately

If you’re not sure whether you’re affected, you can check your current benefit status via your online DWP account.

With millions set to be impacted, the DWP’s managed migration to Universal Credit is a major overhaul of the UK’s welfare system.

The six legacy benefits will be scrapped by March 2026, and claimants must act fast to prevent disruption in payments.

Whether you receive Income-Related ESA, Housing Benefit, or Tax Credits, it’s vital to stay informed, check for Migration Notices, and submit your Universal Credit claim on time. Those who act early can avoid losing as much as a full month’s worth of financial support.

FAQs

What should I do if I receive a migration notice from DWP?

You must apply for Universal Credit within the timeframe specified in the notice to avoid losing your current benefits.

Can I stay on my legacy benefit instead of switching to Universal Credit?

No. Once you receive a Migration Notice, you are required to switch to Universal Credit to continue receiving support.

Will my payment amount change under Universal Credit?

Your entitlement may vary depending on income, assets, and household situation. Use the Universal Credit calculator to estimate your new payments.

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