The Department for Work and Pensions has delayed the managed migration of most people claiming income-related Employment and Support Allowance (irESA) to Universal Credit until April 2028, according to an announcement made alongside the Autumn Statement on 17 November 20221. The delay covers around 1 million irESA claimants1.
The DWP's previous plan was that all 2.5 million people still claiming legacy benefits would be migrated to Universal Credit before the end of 20241. The delay applies to people claiming only irESA, or both irESA and Housing Benefit. Claimants who also receive Child Tax Credit will still be asked to move to Universal Credit at some point before the end of 20241.
Neil Couling, the Senior Responsible Owner for the implementation of Universal Credit, told an online meeting following the Autumn Statement that the decision was based on saving money for the department. He said claimants on irESA are more likely to benefit from being on Universal Credit, so moving them more slowly would save the country money in the long run1. He also said the delay would not affect the managed migration of other legacy benefits1.
A separate delay affects pensioners claiming Housing Benefit. The government plans to create a new housing element of Pension Credit, but this will now not take place until 2028. Until then, eligible pensioners will continue to receive Housing Benefit1.
The Autumn Statement also set out other changes taking effect from April 2023 unless stated otherwise1:
| Measure | Detail |
|---|---|
| Benefit uprating | Majority of benefits uprated by September's CPI figure of 10.1%1 |
| Benefit cap, couple or person with children, inside London | £25,323, up from £23,0001 |
| Benefit cap, couple or person with children, outside London | £22,020, up from £20,0001 |
| Benefit cap, single person, inside London | £16,967, up from £15,4101 |
| Benefit cap, single person, outside London | £14,753, up from £13,4001 |
| Means-tested benefits | 8 million households to receive £900, paid in more than one instalment1 |
| Pensioner households | 8 million households to receive £3001 |
| Non-means-tested disability benefits | 6 million people to receive £1501 |
| Energy Price Guarantee | Typical household bill subsidised to £2,500 a year, becoming £3,000 between April 2023 and March 20241 |
| Alternative fuels | £200 payment this winter instead of £100, for households using heating oil, LPG, coal or biomass1 |
The benefit cap has not been changed since 20161. The Administrative Earnings Threshold rises from January 2023, from the equivalent of 12 hours to 15 hours at the National Living Wage, and from September 2023 low earners will need to meet their work coach on a quarterly basis under a phased rollout1. Most Income Tax and National Insurance thresholds have been frozen until 20281.
Why it matters for households
People claiming only irESA, or irESA with Housing Benefit, will stay on those benefits for longer than previously planned, with managed migration now scheduled for April 20281. Those who also claim Child Tax Credit face moving to Universal Credit before the end of 20241. Claimants on irESA can still claim Universal Credit voluntarily if they believe they would be better off, but there is no going back once a claim is made1. Pensioners claiming Housing Benefit continue on that benefit until the planned Pension Credit housing element arrives in 20281.
The uprating and cost of living payments affect a much larger group. Around 8 million households on means-tested benefits receive £900 in more than one instalment, 8 million pensioner households receive £300, and 6 million people on non-means-tested disability benefits receive £1501. The Energy Price Guarantee limits the price paid per unit of gas and electricity until March 2024, but does not cap the monthly amount charged, which still depends on usage1. Households using alternative fuels receive £200 this winter instead of £100, and all households in Northern Ireland receive this £2001.
What happens next
The uprating, benefit cap changes and most other measures take effect from April 20231. The Administrative Earnings Threshold rise takes effect from January 2023, with the In-Work Progression Offer rolled out in phases from September 20231. The Energy Price Guarantee runs until March 2024, with the £3,000 level applying between April 2023 and March 20241. No date has been given for when the cost of living payments will be made1.
Sources1 cited
- Autumn Statement update November 2022 entitledto.co.uk
Turn2usFree benefits calculator and grants search from a charity
Citizens AdviceFree advice on money, consumer and legal problems in England and Wales
GOV.UKOfficial information on tax, benefits and government services
MoneyHelperFree, impartial money and pensions guidance, set up by government