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DWP to end payment of main benefits | Personal Finance | Finance
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DWP to end payment of main benefits | Personal Finance | Finance

The Department for Work and Pensions (DWP) has decided to bring forward the end of paying a key benefit by two years, a controversial decision. Employment Support Allowance (ESA), which provides crucial financial help to people with disabilities or health conditions impacting their ability to work, was initially due to be phased out by 2028.

However, the transfer timetable has been accelerated, prompting current ESA recipients to move to Universal Credit before April 2026. The change is part of the Government’s wider ambition to migrate various benefits to Universal Credit, a plan reaffirmed in the Chancellor’s latest autumn statement.

The Autumn Statement documents reveal: “This move will enable more people to access a modern benefits scheme, continuing to ensure they have support to find and access work. Around half of ESA claimants will receive more financial aid under UC, while others will receive transitional protection to ensure no one is worse off by the time they move to UC.

To allay concerns, the DWP ensures that “transitional protection” measures will offset any shortfall as ECS claimants transition to Universal Credit. This means that individuals will not face a drop in income due to the changeover to the euro.

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

This notice also sets a deadline for applicants to continue receiving alimony. Once they receive a migration notice, they have three months from the date on their letter to apply for Universal Credit. It is essential to remember that ESA recipients do not need to take any action until they receive their migration notice letter from the Department for Work and Pensions (DWP). More information about transitioning to Universal Credit after receiving a Migration Notice letter can be found here.