DWP scraps two vital benefits in major Universal Credit overhaul - what you need to know
The Department for Work and Pensions (DWP) has confirmed two major benefit payments have been scrapped as part of the Government's wider overhaul to Universal Credit.
Income-related employment and support allowance (ESA) and housing benefit will no longer be available for claimants as the department ends moving Britons on legacy benefits to Universal Credit.
Since 2023, consecutive Governments have implemented a "migration scheme" which has seen older payments discontinued with new claimants being moved onto the primary out-of-work benefit.
Other payments considered legacy benefits include child tax credit, working tax credit, income support, and income-based jobseeker’s allowance (JSA).
According to the DWP, close to two million people have now completed the switch from what the department described as "outdated" benefits to the universal credit system.
Sir Stephen Timms, minister for social security and disability, told The Independent: "The successful completion of the move to Universal Credit marks a major milestone, with nearly two million people having now moved on to Universal Credit from legacy benefits, including income-related employment and support allowance and housing benefit, which have now closed for most working households.
"We've provided extensive tailored support to ensure the most vulnerable customers are supported on every step of their journey, including home visits, specialist safeguarding referrals, dedicated Jobcentre staff and extra time for those requiring an appointee."
Despite this, the migration scheme has drawn criticism from welfare experts, who argue the DWP's three-month deadline system for claimants to transfer or risk losing payments fails to accommodate all individuals.
Research published by the Child Poverty Action Group in August 2025 raised concerns that some people were "slipping through the net" during the transition process, with evidence that claimants "are missing deadlines and losing their income".
Analysts warned this income loss could result in a "hard landing" for affected households.
Even with the migration scheme in place, housing benefit continues for approximately 1.6 million claimants, primarily those living in temporary accommodation or who have reached state pension age, according to DWP figures for February.
Sir Stephen noted the scheme's conclusion arrives alongside wider Labour Government initiatives to boost employment.
These include reforms to Universal Credit aimed at removing obstacles that previously steered people towards long-term sickness benefits, the introduction of a "right to try" policy, and a £3.5billion commitment to help sick and disabled individuals find work.
Charities have criticised these reforms, including Turn2Us CEO Thomas Lawson, who stated: "MPs voted to reduce support for people unable to work by over £200 a month.
"Halving the health element of Universal Credit for anyone who becomes sick from April 2026 will increase hardship and mean even more people are going without essentials.
"To build a system we can all trust, the Government now needs to review the whole system and really listen to disabled people and organisations like ours. In a country as wealthy as ours, sickness should never mean hunger or eviction."