The Department for Work and Pensions (DWP) has confirmed its intention to close two legacy benefits from June 30, 2026. Housing Benefit and income-related Employment and Support Allowance (ESA) are set to be abolished as part of the ongoing Move to Universal Credit programme.
Official Announcement
Sir Stephen Timms, DWP minister, stated: "Transforming the way that Department for Work and Pensions delivers its services is key to ensuring that we improve the customer experience, while delivering value for money for taxpayers." He emphasised that the Move to Universal Credit programme aims to modernise and simplify the benefits system by replacing older legacy benefits with a single, monthly payment.
Universal Credit is now claimed by more than 8 million people, playing a hugely significant role in society. On March 31, 2026, the DWP completed the transition of customers receiving Income Support and income-based Jobseeker's Allowance to Universal Credit, allowing the closure of those outdated systems.
Transition Support
The DWP recognises that for many people, engaging with Universal Credit is a very different experience compared to ESA. The transition process has highlighted changes to appointees for customers. Therefore, the DWP intends to exempt customers who require time to find an appointee from the initial abolition date. Additional time will be provided while a personal appointee is found or a corporate appointee is agreed, with a later date for final closure when it is safe to do so.
The DWP will proactively engage with customers and their representatives to support them in making the move to Universal Credit.
Statistics and Progress
According to the Department’s Move to UC official statistics published in February 2026, as of December 31, 2025, 2.4 million individuals across 1.8 million households have been notified of the need to transition to Universal Credit from all legacy benefits. Over 1.5 million households have gone on to make a claim to UC.
Sir Stephen Timms added: "The continued engagement and collaboration of our external stakeholder network has been invaluable in ensuring we continue to move those who remain on legacy benefits across safely. It is right that we now continue to review carefully the support Universal Credit provides, that we make sure we understand our customers fully and that Universal Credit remains fit for the next decade and beyond."
Leading the UC review, he engaged with a wide range of organisations and people, including those with first-hand experience of claiming Universal Credit, those who support them, and experts in the system. The DWP hosted workshops, roundtables, and focus groups, and undertook research including a survey of nearly 10,000 customers.
