The Department for Work and Pensions (DWP) has set a definitive deadline to move all claimants from the old income-related Employment and Support Allowance (ESA) system onto Universal Credit. Sir Stephen Timms, the Minister for Social Security and Disability, confirmed the department aims to complete this major migration by March 2026.
Minister Responds to Concerns Over Claimant Income
The minister's statement came in a written response to Labour MP for Portsmouth North, Amanda Martin. She had raised concerns about whether disabled people receiving Personal Independence Payment (PIP) and legacy benefits would be classed as new claimants during the shift, potentially facing a reduction in their support.
Sir Stephen Timms clarified that ESA claimants will be moved to the Universal Credit Health Element as part of this process. To protect anyone not migrated by April 2026, the DWP intends to mirror the upcoming Universal Credit changes within the existing ESA rates. This includes adjustments to the support component and the severe and enhanced disability premiums to reflect new Limited Capability for Work and Work-Related Activity (LCWRA) rates.
"Including these commensurate measures aims to give fair treatment for all customers moving onto Universal Credit from income-related ESA, regardless of their point of migration," the minister stated.
Overhaul of the Welfare System Under the Universal Credit Act
These changes are part of the broader Universal Credit Act, which recently received Royal Assent. The Act seeks to rebalance the core payment and health top-up within Universal Credit to tackle what the DWP calls "perverse incentives" in the system.
The key reforms include:
- Permanently increasing the Universal Credit standard allowance above inflation for the next four years, worth an estimated £725 by 2029/30 for a single adult aged 25 or over.
- Reducing the health top-up for new claims to £50 per week from April 2026.
- Ensuring all existing recipients of the Universal Credit health element, plus new claimants meeting Severe Conditions Criteria or under Special Rules for End of Life (SREL), continue to receive the higher payment after April 2026.
- Introducing exemptions from reassessment for those with the most severe, lifelong conditions.
The DWP estimates nearly four million households will see an annual income boost from these changes.
New 'Right to Try' Guarantee and PIP Review
Alongside the migration, the DWP has announced a significant new 'Right to Try Guarantee'. This allows people on health and disability benefits to attempt work without the immediate fear of being reassessed and losing their support, offering security for those recovering or wishing to re-enter employment.
Furthermore, a ministerial examination of the PIP assessment process will be co-created with disabled people and their representative organisations. Headed by Disability Minister Sir Stephen Timms, the review aims to ensure the assessment remains fair and fit for the future.
These wide-ranging reforms are supported by a £3.8 billion investment over the Parliament in tailored employment, health, and skills support, forming part of the government's Pathways to Work guarantee.
