Income-related Employment and Support Allowance (ESA) is being replaced by Universal Credit and in the Budget, it was revealed all claims will end two years earlier, by April 2026
The Department for Work and Pensions (DWP) is speeding up the switchover to Universal Credit for thousands of Brits claiming one particular benefit.
Income-related Employment and Support Allowance (ESA) is being replaced by Universal Credit and the original timescale for this was by the end of 2028. However, in her Autumn Statement, Rachel Reeves confirmed that all ESA claims will now end two years earlier, by April 2026.
ESA is awarded to people that need help with living costs if they’re unable to work because of illness or disability. The Budget documents said: “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.” It means after April 2026, you won’t be able to put in a new claim for ESA and anyone currently claiming this benefit will be told to apply for Universal Credit instead.
ESA isn’t the only benefit being replaced by Universal Credit – you can find a full list of welfare payments that are being affected by the switchover below:
The rollout of Universal Credit is known as “managed migration” and is being done in stages, depending on which benefit you’re currently claiming. Once it is your turn to move to Universal Credit, you’ll be sent a “migration notice” letter in the post which will give you three months to switch to Universal Credit.
You can choose to move over to Universal Credit earlier, but you need to check if you’ll be better off first, as you won’t be able to move back to your old benefits. The DWP claims 55% of people will be better off on Universal Credit, and 35% would be worse off. The remaining benefit claimants will see no change. You should use one of the following free benefit calculators to get a rough idea about whether you will be better on Universal Credit:
Once you’ve used one of these calculators, always seek expert advice first before switching to Universal Credit – don’t rely on just what these calculators tell you. You can contact Citizens Advice or Turn2Us for free benefits advice. If you are moved over to Universal Credit through “managed migration” and you’ll be worse off, you will get monthly transition payments to cover any financial shortfall. You only get the transitional payments if you are moved across by the DWP through the “managed migration” process.
