The UK government is making big changes to the welfare system, and millions of people are being affected. Six key benefits are being scrapped and replaced with Universal Credit (UC), a major shift that will impact how you receive support. If you’re currently on one of these benefits, it’s essential to understand what’s changing, what you need to do, and when to act.
Whether you’re a working parent, someone with a disability, or looking for employment, these updates will likely affect you. Let’s break it down step-by-step to help you prepare and protect your income.
6 Benefits Are Being Scrapped for Universal Credit
| Topic | Details |
|---|---|
| Benefits Being Scrapped | Income-based JSA, Income-related ESA, Income Support, Working Tax Credit, Child Tax Credit, Housing Benefit |
| New System | Universal Credit (UC) |
| Deadline to Act | By end of 2026 (depending on individual migration notices) |
| What Happens If You Don’t Switch | You may lose access to current benefits |
| How Many Are Affected | Over 2 million claimants still need to switch |
The transition from legacy benefits to Universal Credit is a major change in the UK welfare system. Understanding what’s changing, when to act, and how to apply is crucial for protecting your income and avoiding disruptions.
If you or someone you know is receiving any of the six scrapped benefits, now is the time to prepare. Seek advice, use online tools, and stay informed. The shift may feel daunting, but with the right support, you can navigate it successfully.
Why Are These Benefits Being Replaced?
The Department for Work and Pensions (DWP) is consolidating six legacy benefits into one streamlined system: Universal Credit. This change is part of a long-term reform to simplify the welfare process and ensure that work always pays.
The benefits being replaced are:
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
- Housing Benefit
These are all means-tested benefits, meaning your income and savings are taken into account. Under Universal Credit, everything is rolled into one monthly payment.
What Is Universal Credit?
Universal Credit is a benefit for people who are:
- On a low income
- Out of work
- Unable to work due to illness or disability
It combines multiple forms of financial support into a single payment. This includes help with housing, children, and unemployment. It aims to make the system clearer and easier to manage.
Key Features of Universal Credit
- Paid monthly directly into your bank account
- Online management: Apply, update, and track your claim digitally
- Support for housing, childcare, and work-related costs
- Designed to encourage work by reducing benefits gradually as income increases
Who Is Affected and When?
More than 2 million people are still receiving the older benefits and must transition to Universal Credit. The DWP is sending out migration notices to inform people when they must switch.
Once you receive a migration notice, you have 3 months to apply for Universal Credit. If you do not apply within this period, your existing benefits will stop.
Transition Timeline
- April 2025: Final Tax Credit cases to be migrated
- March 2026: All remaining income-related ESA cases will be migrated
What Should You Do If You Receive a Migration Notice?
- Don’t ignore it: This is a time-sensitive letter
- Check your eligibility: Use benefit calculators like Turn2Us or EntitledTo
- Apply promptly: Submit your Universal Credit application within the 3-month window
- Seek help: Free support is available from Citizens Advice through their “Help to Claim” service
Will You Be Better or Worse Off?
The impact of moving to Universal Credit depends on your circumstances. According to the DWP:
- 1.4 million people will be better off
- 300,000 will see no change
- 900,000 may be worse off
However, if you’re required to switch under managed migration, you may qualify for transitional protection. This ensures you don’t lose money overnight. The extra support will decrease over time, especially if your circumstances change.
Real-Life Example
Sarah, a single parent with two kids, was on Working Tax Credit and Housing Benefit. After receiving a migration notice, she applied for Universal Credit and got transitional protection. While her UC payment was slightly lower, she also gained access to the Work Coach program and local childcare support.
Common Challenges and How to Overcome Them
Digital Access
Universal Credit is managed online, so you need internet access and digital literacy.
Tip: If you’re not confident using a computer, ask for help at your local library or contact Citizens Advice.
Payment Delays
It may take up to 5 weeks to receive your first Universal Credit payment.
Tip: You can request an advance payment to bridge the gap.
Budgeting
Monthly payments require new budgeting habits.
Additional Benefits Under Universal Credit
Work Coach Support
Every Universal Credit claimant gets a dedicated work coach who helps with job applications, training, and career planning. This service is aimed at helping people return to or progress in work.
Childcare Support
Universal Credit provides up to 85% of childcare costs for working parents, making it easier to balance job responsibilities and family life.
Help for the Self-Employed
There is tailored support for self-employed claimants including startup advice and a minimum income floor system.
Housing Costs
Rent support continues under Universal Credit, though the way it’s paid may change. Tenants typically receive the money and are responsible for paying landlords directly.
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FAQs About 6 Benefits Are Being Scrapped for Universal Credit
1. What happens if I don’t respond to my migration notice?
You may lose your current benefits. It’s crucial to apply within 3 months.
2. Can I switch to Universal Credit early?
Yes. This is called natural migration, but be cautious—you may not get transitional protection.
3. Will my rent be paid directly to my landlord?
Only in certain cases. Otherwise, you must pay your landlord yourself.
4. Where can I get help?
Visit Citizens Advice or call the Universal Credit helpline at 0800 328 5644.
5. What is transitional protection and how does it work?
It is a top-up that ensures your income doesn’t drop when you move to Universal Credit. It applies only if you’re moved by the DWP through managed migration.
6. What documents will I need to apply?
You’ll typically need identification, proof of rent, income details, and savings information.
