DWP scrapping benefit claimed by 1.6 million people 'years ahead of schedule'

A benefit is set to be scrapped by the Department for Work and Pensions - two years early. The DWP has confirmed that it is accelerating the process of binning income-related employment and support allowance (ESA).

Instead of receiving income-related ESA, the DWP has encouraged households to change over to Universal Credit. Initially, all ESA claimants were expected to be transferred to Universal Credit by the end of 2028.

Universal Credit was set up to replace legacy benefits, including income-related ESA. However, in her Autumn Statement, Labour Party Chancellor Rachel Reeves confirmed that all income-related ESA claims will now end by April 2026.

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There were 1.6 million people on Employment and Support Allowance (ESA) at August 2023, a decrease of 89,000 over the last year. The Budget documents added: "This move will bring more people into a modern benefit regime, continuing to ensure they are supported to look for and move into work. Around half of ESA claimants will receive more financial support on UC, while others will receive transitional protection to ensure nobody is worse off at the point at which they move over to UC."

This means that from 2026, households will no longer be able to renew their income-related ESA claims. Households must switch to Universal Credit, or their payments will stop.

The push to move all two million claimants on legacy benefits to Universal Credit by the end of March 2025 is taking place through a process known as managed migration.

Citizens Advice explained: "The Department for Work and Pensions are stopping some people’s benefits and telling them to claim Universal Credit instead. If you get a letter telling you to claim Universal Credit by a certain deadline, this is a ‘migration notice’. You should claim Universal Credit by the deadline in the migration notice. Your old benefits will stop after the deadline."

The charity group said: "You might miss out on some money if you apply after the deadline."