DWP benefit to be replaced by Universal Credit next spring

A Department for Work and Pensions (DWP) benefit is due to be abolished by next spring, with claimants being transferred to a new payment.

The DWP will terminate the income-related Employment and Support Allowance (ESA) and transition claimants to Universal Credit by March.

Labour Party Minister for Social Security and Disability, Sir Stephen Timms, also stated that part of this migration process will see ESA claimants move to the Universal Credit Health Element, reports Birmingham Live.

In the Commons, Labour MP Amanda Martin, queried Sir Stephen before the summer recess began.

She asked: “whether claimants with disabilities who are in receipt of the Personal Independence Payment and legacy work-related benefits will be treated as new claimants for the purposes of the proposed changes to the health element of Universal Credit when they are migrated onto Universal Credit through managed migration; and whether such claimants will see a reduction in their income as a result of these proposed changes.”

Timms responded: “The Department plans to complete migration of ESA claimants to UC by March 2026. As part of this ESA claimants will be migrated to the UC Health Element.”

The Labour Minister continued, informing Ms Martin: “To protect any claimants who have not migrated by April 2026 we intend to mirror as closely as possible the changes made in UC in the ESA rates.”

“Changes to the “support component” and the two disability premia (severe and enhanced disability premium rates) will reflect changes to UC LCWRA rates for existing claimants.”

Sir Stephen added: “Including these commensurate measures aims to give fair treatment for all customers moving onto UC from income related ESA, regardless of their point of migration.”

As of July 2025, over 7.7 million people were claiming Universal Credit in Great Britain, according to Statista.

Timms represents East Ham as an MP, whilst his Labour colleague Ms Martin serves the Portsmouth North constituency.

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