DWP gives new deadline for benefit claimants to make crucial switch

Some benefit claimants have been given an extended period to ensure they continue their payments as the government makes a major update on the rollout of universal credit.

The deadline for closing all so-called legacy benefits and switching claimants to universal credit will be brought forward amid efforts to help some of the “most vulnerable” people, the Department for Work and Pensions (DWP) has said.

The department had promised that the “managed transition” process to move people from legacy benefits to universal credit (UC) would be finalized by the end of March 2026.

This included working tax credits for working-age households, child tax credits, income-related jobseekers allowance, income-related employment and support allowance (ESA), income support and the closure of housing benefit.

But on Tuesday the DWP said employment and support allowance and housing benefit would not be shut down until “the end of the summer” as part of its “ongoing commitment to supporting and protecting our most vulnerable customers”.

The department said this means “a limited number of hard-to-reach customers or customers with significant barriers to claiming can continue to be supported to switch to universal credit”.

The department said its managed migration process has so far helped more than 1.9 million people move to UC, including 135,000 income support and income-related jobseeker’s allowance claimants.

A 2024 report by the Public Accounts Committee (PAC) warned that any failure in the process of moving people from legacy benefits to UC could lead to “real-world misery for thousands of people”.

The report said the Department for Work and Pensions said it expected around 4% of claimants on aged benefits at that point would not switch to UC under the process.

Once the target deadline is up, the government said it would provide extra support to ESA and housing benefit recipients, including a dedicated telephone helpline and home visits.

Sir Stephen Timms, Minister for Social Security and Disability, said: “Our transition to universal credit campaign has been successful in moving more than 1.9 million people from legacy benefits to the modern universal credit system.

“Vulnerable customers have been at the forefront of this campaign. In their interests, we are extending the transition period for those claiming income-related Employment Support Allowance.

“As part of our Plan for Change, this Government is committed to updating the welfare system to encourage rather than stifle opportunity.

“The campaign means the number of people receiving universal credit has increased, particularly the number of people receiving the benefit without having to look for work, as the focus since June last year has been on moving vulnerable people away from Employment and Support Allowance.”

Figures published in February showed the total number of UC claimants in Britain reached 8.34 million in December 2025, up almost a million from 7.36 million 12 months earlier.

The data breakdown showed that more than three-quarters of this increase was not due to new claims, but instead consisted of people switching from other benefits to UC.

The government has described UC as a benefit that “better reflects today’s labor market and opens up a range of supports to help people approach or get into work”.

As part of the government’s efforts to combat rising welfare bills, previously announced reforms will come into force in April; It will reduce the health element of UC to address what ministers described as “false incentives” in the system, saving almost £1bn and tackling “welfare dependency”.

Last year ministers were forced to abandon plans to also reform disability benefits, including for those with mental health problems, in the face of lagging opposition from Labour.

Rather than urgent reform, the Timms review seeks views on the personal independence payment (Pip) and how it works; Ministers have promised to make any changes to the benefit, which helps with extra living costs for people with long-term physical or mental health conditions or disabilities who have difficulty carrying out certain daily tasks or moving around because of their condition, but the payment has been delayed until it is delivered.

The review is expected to be submitted to Work and Pensions Minister Pat McFadden by the autumn; The government stated that a temporary update would come before this.