DWP Accelerates Final Phase of Universal Credit Transition
The Department for Work and Pensions has entered the conclusive stage of its extensive welfare system overhaul, issuing urgent Migration Notice letters to thousands of individuals currently receiving income-related Employment and Support Allowance. These communications inform claimants that their existing payments will be terminated within weeks unless they proactively apply for Universal Credit within a strict three-month window.
Imminent Deadline for Legacy Benefit Closure
The DWP has confirmed its intention to permanently close all remaining legacy benefit claims by the 31st of March 2026. This definitive deadline marks the culmination of a prolonged migration process designed to transition the entire welfare system onto the Universal Credit platform. Every individual currently receiving income-related ESA, whether as a standalone payment or combined with Housing Benefit for rental support, is expected to have moved across to Universal Credit by this date.
For those whose existing claim includes contribution-based ESA elements, these will be automatically converted to New Style ESA. The monetary value will remain identical and will be fully deducted from the claimant's subsequent Universal Credit entitlement, ensuring no financial loss occurs during the transfer.
Escalated Migration Efforts and Support Measures
Last year, the DWP publicly committed to intensifying its efforts to migrate all ESA claimants onto Universal Credit, thereby enabling the permanent closure of the legacy benefit. By April 2025, the department reported "good progress", with over 200,000 income-related ESA claimants successfully transferred through the managed migration programme.
To meet the impending March 2026 deadline, the department significantly increased the volume of Migration Notices dispatched monthly to 83,000. This strategic escalation was implemented to allocate additional time and resources for supporting more vulnerable recipients through the complex transition process. While initial projections suggested the final batch of letters would be sent by September, official confirmation regarding whether this internal milestone was achieved remains unclear.
Protective Measures for Delayed Transitions
Addressing parliamentary concerns, Sir Stephen Timms, the DWP Minister for Social Security and Disability, outlined protective provisions for any claimants unable to complete migration by April 2026. He confirmed that their existing legacy payments would be adjusted to reflect the 6.2% above-inflation increase being applied to Universal Credit rates.
Sir Stephen elaborated: "The Department plans to complete migration of ESA claimants to UC by March 2026. To protect any claimants who have not migrated by April 2026 we intend to mirror as closely as possible the changes made in UC in the ESA rates. Including these commensurate measures aims to give fair treatment for all customers moving onto UC from income-related ESA, regardless of their point of migration."
Broader Context of Welfare Reform
This final push to migrate ESA claimants follows the abolition of two other legacy benefits: Working Tax Credit and Child Tax Credit, which were officially discontinued in April 2025. The remaining legacy benefits—Income Support, income-related ESA, income-based Jobseeker's Allowance, and Housing Benefit—are scheduled for official termination at the start of the new financial year, pending completion of all individual migrations.
To facilitate a smoother transition, the DWP has instituted a crucial support measure: ESA claimants will receive an additional two weeks of their existing payment. This bridging payment is designed to help cover essential costs such as rent and living expenses during the five-week waiting period typically experienced before the first Universal Credit payment is received after a new claim is submitted.
