DWP to end key benefit payment | Personal Finance | Finance

The Department for Work and Pensions (DWP) has decided to bring the end of a key benefit payment forward by two years in a controversial move. The Employment Support Allowance (ESA), which offers crucial financial aid to those with disabilities or health conditions impacting work ability, was initially set to be phased out by 2028.

However, the transfer timeline has been accelerated, prompting current ESA recipients to shift onto Universal Credit before April 2026. This change forms part of the government’s larger ambition to migrate various benefits to Universal Credit, a plan reasserted in the Chancellor’s latest Autumn Statement.

The Autumn Statement documents revealed: “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.”

To assuage concerns, the DWP assures that ‘transitional protection’ measures will makeup for any shortfall when claimants transition from ESA to Universal Credit. This means that individuals will not face a drop in income due to the changeover.

However, they must respond to a migration notice and apply for Universal Credit, or they risk losing their benefits altogether.

This notice also sets a deadline for claimants to continue receiving support. Once they receive a migration notice, they have three months from the date on their letter to apply for Universal Credit. It’s crucial to remember that ESA recipients don’t need to take action until they receive their migration notice letter from the Department for Work and Pensions (DWP). More information on transitioning to Universal Credit after receiving a Migration Notice letter can be found here.