The Government has outlined the timeline for phasing out six benefits as part of the transition to Universal Credit. Individuals currently receiving legacy benefits are being prompted to apply for Universal Credit to ensure they keep getting their payments.
Migration notices are being dispatched to people in stages, instructing recipients to submit applications within a specified timeframe or their payments will end. Social security minister Sir Stephen Timms addressed Parliament, revealing that since 2022, around 943,000 households have been alerted to switch to the new system.
The focus is now on moving over those receiving income-related Employment and Support Allowance (ESA). Sir Stephen Timms stated: “DWP will steadily increase the number of migration notices being sent to people receiving ESA over the next months and are aiming to issue 63,000 migration notices each month from February, sending the final notices in early December 2025 and fully moving people to Universal Credit and closing legacy benefits by the end of March 2026.”
He further disclosed the intention to “formally close” the Move to Universal Credit programme by the end of March 2025. Mr Timms highlighted the advantages of transitioning to Universal Credit with his remarks: “Universal Credit provides greater support and incentives to get people into work and increase the hours they work than the benefits it replaces.”
These are the six benefits being replaced by Universal Credit:
- Income-based Jobseekers Allowance
- Housing Benefit
- Working Tax Credit
- Income Support
- Child Tax Credit
- Income-related Employment and Support Allowance
However, there has been some contention regarding benefits recently, as new powers are being given to DWP investigators to scrutinise banking details of claimants suspected of benefit fraud. These new measures are part of Labour’s Fraud, Error and Debt Bill, which also permits officials to search premises and confiscate assets in instances where organised crime groups are exploiting the welfare system.
Financial expert Yiannis Zourmpanos, a lead contributor at Bountii, commented on the matter, saying: “The idea that the Government can peer into your bank account feels invasive, and I understand why. From a financial perspective, this kind of oversight raises ethical issues.”
He added: “But remember, it’s also a balancing act. The DWP is trying to ensure that public funds are being properly allocated, and they’re arguing that the level of fraud warrants a more robust approach.”