The deadline for completing the move from legacy benefits to universal credit was brought forward to March 2026, with payments due to end by 31 March 20261. The former Conservative government had initially planned to complete the move by 2028, but in April 2024 the deadline was brought forward to March 20261.
In 2012, the government announced plans to replace the legacy benefit system with a single payment, universal credit1. The process started in July 2022 following a pilot programme in 20191. The benefits being phased out are tax credits, income-based jobseeker's allowance, income support, housing benefit and income-related employment and support allowance1. Tax credits closed to ongoing claims in April 2025, while universal credit has already replaced all new claims for income support and income-based JSA1. People claiming ESA are now being contacted as part of the final phase of the move to universal credit1.
The DWP moves people across through a process known as managed migration, sending a letter called a migration notice that explains when and how to make a claim1. Claimants are not automatically moved over: once the letter arrives, there are three months to submit a universal credit claim by the deadline shown, and if the claim is not made by that date, legacy benefits stop1. It currently takes around five weeks to receive a first universal credit payment1.
According to a 2022 DWP analysis, 55% of legacy benefit claimants will be better off under universal credit, while 35% would have a lower entitlement1. Transitional protection tops up a universal credit payment to match what was previously received and is applied automatically1. Claimants are not entitled to transitional protection payments if they claim before receiving a managed migration notice, or if they submit a claim after their personal deadline1. There is a one-month grace period: claiming within that month means the application is automatically backdated and transitional protection remains available1.
| Group | Position under the move |
|---|---|
| Claimants in supported or temporary accommodation | Can still claim housing benefit through the local council, even if receiving universal credit for other living costs1 |
| People who have reached state pension age | Not affected by the move and can still claim housing benefit in the usual way for help with rent1 |
| Pension credit claimants | Pension credit is not affected and will remain in place1 |
| New style JSA and new style ESA claimants | Sit outside the legacy benefit system, are not being replaced by universal credit and continue alongside it1 |
The government has said it plans to bring pension credit and housing benefit closer together to streamline support, due to happen at some point in 20261. Until then, housing benefit remains in place for people who have reached state pension age1. The government has also set out plans to replace both new style jobseeker's allowance and new style employment and support allowance with a single, time-limited "unemployment insurance" benefit from 2028-29, paid at the current employment and support allowance rate of £138 a week under proposals published in a Green Paper; these proposals are not final and further detail is expected in a future White Paper1.
Why it matters for households
Anyone still receiving tax credits, income-based JSA, income support, housing benefit or income-related ESA is affected, with payments due to end by 31 March 20261. The practical effect is that a migration notice sets a personal deadline, and missing it stops legacy payments1. Because a first universal credit payment takes around five weeks, and some legacy benefits continue for a short period after a claim to bridge the gap, the timing of a claim affects household cash flow1. Where universal credit entitlement is lower, transitional protection makes up the difference automatically, but it is lost if a claim is made before the migration notice arrives or after the personal deadline1. Claimants who cannot claim before their deadline can contact the universal credit migration notice helpline, and in some cases the DWP can give extra time while keeping transitional protection eligibility1. Claiming within the one-month grace period means the application is automatically backdated and transitional protection remains available1. People who have reached state pension age are not affected, and pension credit remains in place1.
What happens next
The final phase of contacting people claiming ESA is under way1. The bringing together of pension credit and housing benefit is due to happen at some point in 20261. Further detail on the proposed "unemployment insurance" benefit, which would replace new style jobseeker's allowance and new style employment and support allowance from 2028-29, is expected in a future White Paper1.
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