The Department for Work and Pensions (DWP) has outlined its plan to complete the migration of claimants on income-related Employment and Support Allowance (ESA) to Universal Credit by March 2026. This move includes transitioning claimants onto the Universal Credit Health Element to streamline support for people with disabilities.
In response to questions from Labour MP Amanda Martin regarding the treatment of disabled claimants receiving Personal Independence Payment (PIP) and legacy work-related benefits, Social Security and Disability Minister Sir Stephen Timms clarified how the changes would affect these individuals. He assured that ESA claimants moving to Universal Credit would receive equitable treatment, maintaining disability-related support components that mirror existing ESA rates.
To safeguard claimants who remain on ESA past April 2026, the DWP intends to align ESA rates with the updated Universal Credit Limited Capability for Work and Work-Related Activity (LCWRA) rates. This approach aims to balance fair treatment for all claimants regardless of when they transition.
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These welfare reforms accompany the Universal Credit Bill, which seeks to enhance the support system by increasing the standard allowance permanently above inflation, reaching £725 annually for single claimants aged 25 or over by 2029/30. The Institute for Fiscal Studies (IFS) highlights this as the largest real-terms increase in out-of-work support since 1980.
The Bill also addresses systemic issues by rebalancing the health-related and standard Universal Credit elements, removing incentives that contribute to long-term dependency. Passed by the House of Lords in July, the legislation awaits Royal Assent.
Notably, the DWP is introducing the ‘Right to Try Guarantee,’ empowering disabled individuals and those with health conditions—such as people recovering from illness—to attempt work without risking reassessment. This measure supports recipients of the Universal Credit Health Element and new claimants with severe or terminal conditions, ensuring their allowance increases at least in line with inflation annually from 2026/27 to 2029/30.
Furthermore, the DWP is spearheading a ministerial review of the Personal Independence Payment (PIP) assessment process, led by Minister Sir Stephen Timms in partnership with disabled individuals, advocacy groups, MPs, and experts. This collaborative review aims to create a fair, future-proof system.
Investment in employment support also forms a core part of the reforms. Over £3.8 billion will be allocated during this Parliament to tailored employment, health, and skills programs to help disabled people and those with health conditions enter or return to work. This includes expanding initiatives like the Connect to Work program, which offers personalized support at key moments for those ready to pursue employment.
In sum, the DWP’s comprehensive welfare reforms intend to provide dignified, secure support while enhancing autonomy for disabled individuals through improved benefits and employment assistance.