DWP to Issue Final ESA Health Benefit Payment in March Before Axe
Final ESA Benefit Payment in March Before DWP Axe

DWP to Pay Out Final ESA Health Benefit in March Before Permanent Termination

The Department for Work and Pensions (DWP) is set to issue the ultimate payment for a key health benefit during March, marking its permanent discontinuation. This action represents the concluding phase of a significant welfare system transformation that has spanned several years in development and implementation.

End of an Era for Employment and Support Allowance

Employment and Support Allowance (ESA), a legacy benefit supporting individuals with disabilities or health conditions that limit their work capacity, is being abolished by the Government. With over 1.3 million claimants across the UK relying on ESA, this change is part of a broader initiative to streamline welfare payments into the single Universal Credit (UC) system.

The transition to Universal Credit is not automatic, requiring claimants to actively apply for UC to continue receiving support. This has led to hundreds of thousands of people losing their benefits due to failure to complete the application process within the designated timeframe.

Migration Notices and Application Deadlines

Affected households should have received migration notices via post, informing them of the upcoming changes. Recipients were given a three-month window from the date of receipt to submit their UC applications. No further ESA payments are scheduled beyond March, and the benefit is being phased out both independently and in conjunction with Housing Benefit.

Phasing out legacy benefits like ESA is a long-running effort, initiated years ago under Conservative leadership, to consolidate most welfare payments into the Universal Credit framework, aiming to simplify the system but resulting in significant claimant adjustments.