The Department for Work and Pensions (DWP) is set to end income-related Employment and Support Allowance (ESA), a benefit currently claimed by approximately 650,000 people. This benefit is being phased out and fully replaced by Universal Credit (UC). As a result, new claims for income-related ESA are no longer permitted.
Previously scheduled for completion between 2028 and 2029, the managed migration process—transitioning around 800,000 claimants from income-related ESA (and those also receiving Housing Benefit) to Universal Credit—has now been brought forward. The DWP began issuing migration notices in September 2024 and aims to notify all remaining claimants by December 2025, with the complete transition expected by March 2026.
Under managed migration, affected claimants receive a formal migration notice informing them that their current legacy benefit will end. They must then apply for Universal Credit to maintain their financial support. The deadline to claim Universal Credit is typically three months from the date stated on the migration notice, with extensions possible if there is a valid reason.
At August 2024, the number of income-related ESA claimants stood at 650,000—a reduction of 75,000 compared to August 2023. Some claimants receive a combination of contribution-based and income-related ESA or credits.
If you currently receive income-related ESA, you can continue to do so until you receive a migration notice. Upon receiving this letter, your income-related ESA payments will cease three months later, so it’s crucial to claim Universal Credit before that deadline to retain financial support and qualify for transitional protection during the switch.
Importantly, making a new Universal Credit claim before receiving your migration notice means you will not be eligible for transitional protection or additional financial support.
The managed migration plan will conclude by 31 March 2026, after which income-related ESA will be fully discontinued. Additionally, claimants currently receiving legacy benefits such as Housing Benefit should note that these will cease if they claim Universal Credit.
Regarding work eligibility, you can only receive ESA if your employment falls under “permitted work” rules.