The Department for Work and Pensions (DWP) has announced that six major legacy benefits will be scrapped by 2026. This change is already affecting many people across the UK and is part of the government’s long-term plan to move everyone onto Universal Credit.
The process, known as “managed migration,” is already in full swing. DWP has started sending letters to claimants, asking them to switch from their current benefits to Universal Credit. If you get one of these letters, it’s important to act within the deadline mentioned – usually three months. If you miss the deadline, your current payments will stop.
Which Benefits Are Ending?
Here are the six benefits that will be fully replaced by Universal Credit:
- Working Tax Credit
- Child Tax Credit
- Income-Based Jobseeker’s Allowance (JSA)
- Income Support
- Housing Benefit (for working-age people)
- Income-Related Employment and Support Allowance (ESA)
These legacy benefits were introduced years ago, and the government believes moving to Universal Credit simplifies the system and reduces errors. But for many people, this change is worrying because it could lead to a loss of income, especially if their circumstances don’t match the new eligibility rules.
Who Will Be Affected and When?
The DWP is sending ‘Migration Notices’ in phases. Those currently receiving tax credits (like Working or Child Tax Credit) are being targeted first. If you’re in this group, you may already have received a letter or will get one soon.
Once you receive the letter, you must apply for Universal Credit within the deadline given. If you don’t, your old benefits will stop automatically, and you might face delays or even lose money.
By the end of 2025, most people on legacy benefits will have been contacted. The entire process is expected to finish by the end of March 2026.
What Should You Do?
If you get a letter from DWP asking you to move to Universal Credit, take it seriously. Here’s what you should do:
- Check the deadline mentioned in the letter.
- Apply for Universal Credit before the deadline – even if you’re unsure about it.
- Use a benefits calculator to compare what you get now vs. what you’ll get under Universal Credit.
- If you need help, speak to a welfare advisor or contact your local council.
If you apply on time and your Universal Credit payments are lower than your current benefits, you may get “transitional protection.” This is a temporary top-up to make sure you don’t lose money right away. But this protection won’t last forever and could stop if your circumstances change.
What Happens If You Don’t Apply?
If you ignore the Migration Notice and don’t apply for Universal Credit before the deadline, your current benefits will stop. There’s no automatic transfer, so missing the window could leave you without any income support.
Even if you later apply for Universal Credit, there might be a gap in your payments, and you could lose out on transitional protection.
Universal Credit: Pros and Cons
While Universal Credit aims to simplify the benefits system, it’s not perfect. Many people have reported issues such as:
- Delays in first payments (usually 5 weeks)
- Monthly payments instead of weekly or fortnightly
- Deductions for debts and overpayments
- Strict job-seeking requirements in some cases
However, it also offers some advantages like:
- One single payment for all needs
- Easier to manage if your circumstances change
- Access to extra support like childcare costs and work incentives
Final Words
If you or someone you know is still on one of the six legacy benefits, now is the time to stay alert. Keep an eye out for any DWP letters, don’t miss the deadlines, and get help if you’re unsure about the process.
The managed migration to Universal Credit is a big change, and while it may help some, it could harm others if action isn’t taken on time.
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