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England TimesEngland Times
Home » DWP crackdown as 400,000 claimants could lose benefits if they fail to act
Money

DWP crackdown as 400,000 claimants could lose benefits if they fail to act

By staff16 May 2025No Comments3 Mins Read

The move comes amid the Government’s drive to scrap so-called legacy benefits and roll everyone into the newer, single-payment Universal Credit scheme

13:28, 16 May 2025Updated 13:28, 16 May 2025

Woman planning her finances, reviews paperwork for insurance, loans, and online investments
The urgent move comes amid the Government’s drive to scrap so-called legacy benefits(Image: Getty)

Hundreds of thousands of people on sickness and disability benefits are being told they must act fast or risk losing their payments under a major shake-up of the welfare system. The Department for Work and Pensions (DWP) is issuing stern warnings to claimants still receiving income-related Employment and Support Allowance (ESA), with 400,000 households now required to switch to Universal Credit.

The move comes amid the Government’s drive to scrap so-called legacy benefits and roll everyone into the newer, single-payment Universal Credit scheme. The process – known as “managed migration” – began as a trial in 2019 and was rolled out fully in 2022.

Now the DWP has brought forward the final deadline by more than two years. While ESA claimants were originally expected to move across by the end of 2028, they must now complete the switch by March 2026. Those receiving migration letters are being given just three months to act – or risk having their payments terminated.

Concerned young hispanic lady looking on smartphone screen having finance savings stolen from bank as money fraud result
Hundreds of thousands of people on sickness and disability benefits are being told they must act fast or risk losing their payments(Image: Getty)

More than 380,000 people have already lost their benefits after failing to respond to similar notices, and the DWP has made clear there will be no extensions for those who miss the deadline. The department has already shut down new claims for four other benefits – tax credits, income-based Jobseeker’s Allowance, Income Support and Housing Benefit – as part of its overhaul.

To accelerate the transition, the DWP is now sending out around 83,000 migration letters a month, with plans to have contacted all remaining ESA claimants by September 2025. Officials insist the new timetable still gives households enough time to adjust. “The accelerated schedule is designed to provide households with sufficient time to successfully transition to Universal Credit,” the department said.

ESA is paid to people who are unable to work due to long-term illness or disability. To date, 200,000 claimants have already made the switch. That leaves a further 400,000 households still to move across. Those who fail to respond to their letter within the three-month window will see their existing payments cut off.

An adult cheerful couple sitting at the table, using a laptop, with the living room visible in the background. They are shopping online with a credit card and look concerned.
The Department for Work and Pensions (DWP) is issuing stern warnings to claimants(Image: Getty)

Citizens Advice is offering a free Help to Claim service, which is available online to guide people through the process. The DWP is also promoting benefit calculators to help claimants understand what they might receive under the new system.

“The DWP encourages all ESA recipients to respond promptly to migration notices to ensure continuous financial support,” the department said. Claimants are being urged not to ignore the letters and to act quickly to avoid disruption to their income.

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