The Department for Work and Pensions (DWP) has confirmed that Housing Benefit and Employment and Support Allowance (ESA) have been abolished for Universal Credit, as part of the Labour government's managed migration process. The announcement was made on July 1, 2026, marking the end of these legacy benefits for most working households.
Two Million People Moved to Universal Credit
The DWP has stated that two million people have now been moved onto Universal Credit under the shake-up. This includes those previously receiving income-related ESA and Housing Benefit, which have now closed for new claims. The move is part of a broader plan to phase out six legacy benefits, including Child Tax Credit, Working Tax Credit, income-based Jobseeker's Allowance (JSA), and Income Support.
Government Support for Vulnerable Customers
DWP minister Sir Stephen Timms commented to The Independent: "The successful completion of move to universal credit marks a major milestone, with nearly two million people having now moved on to universal credit from legacy benefits, including income-related employment and support allowance and housing benefit, which have now closed for most working households." He added that the DWP has provided extensive tailored support, including home visits, specialist safeguarding referrals, dedicated Jobcentre staff, and extra time for those requiring an appointee.
Reforms to Help People into Work
Sir Stephen noted that the end of the scheme comes alongside significant steps to help people into employment, including reforming Universal Credit to remove barriers that pushed people towards long-term sickness benefits, introducing the right to try, and committing £3.5 billion to support sick and disabled people into employment.
What Universal Credit Offers
Under Universal Credit, most people will be entitled to the same amount they received from their previous benefits, or more. The payment is made up of a standard allowance and any extra amounts that apply, such as for children, help with rent, or if the claimant has a disability or health condition that prevents them from working.
