The Department for Work and Pensions (DWP) is ushering in a major overhaul by replacing numerous ageing legacy benefits with Universal Credit, impacting countless individuals across the nation. The slate of benefits set to be superseded includes Housing Benefit, Income-related Employment and Support Allowance (ESA), Income-based Jobseeker’s Allowance (JSA), Child Tax Credit, Working Tax Credit, and Income Support.
A complete transition of claimants to Universal Credit is planned by DWP before March 2026. When the time comes for a changeover, claimants will be notified by mail with a “migration notice” that sets a three-month deadline to switch to Universal Credit.
Failure to make a Universal Credit claim within this window will result in the termination of existing benefits. Those considering an early move to Universal Credit should first carefully weigh up their options – once switched, there is no going back to old benefits.
It’s recommended to begin the process with a thorough personal assessment using one of the free online benefits calculators available from Policy in Practice, entitledto or Turn2us. While these calculators can provide a rough estimate, it’s crucial not to rely solely on them.
It’s recommended to seek advice from Citizens Advice or Turn2Us before applying for Universal Credit. These can guide you through the changes in your payments, reports the Mirror.
This includes the frequency of your payments, how they may be reduced if you fall into debt, and any work commitments you might need to agree to. The DWP states that 55% of people will be better off on Universal Credit, while 35% would be worse off.
The remaining individuals will see no change. If you’re worse off on Universal Credit, you can receive monthly transition payments to cover any shortfall – but only if you wait to be transferred via the “managed migration” process.
This transitional protection lasts until there is no difference between your new Universal Credit award and what you received under legacy benefits. It’s also important to note that you’ll have to wait five weeks for your first Universal Credit payment, although some legacy benefits – including Housing Benefit, Income Support, income-related ESA and income-based JSA – will continue for two weeks to help bridge this gap.