DWP ‘take action’ warning as 6 benefits to be scrapped by 2026 | Personal Finance | Finance

Millions of people across Great Britain are being urged to act as the Department for Work and Pensions (DWP) presses ahead with its sweeping overhaul of the benefits system. Six legacy benefits are scheduled to be completely phased out by March 2026, with recipients required to switch to Universal Credit if they wish to continue receiving financial support.

The DWP has issued a stark warning as failing to respond to a “migration notice” could result in payments being stopped altogether. Those affected will have three months from the date on their notice to apply for Universal Credit, the Government’s all-in-one welfare system designed to simplify the previous patchwork of benefits.

The six legacy benefits being scrapped are:

Tax credits will be the first of these to officially close in April 2025, according to the DWP. Notices have already been sent out to many recipients, and more are set to follow as part of a structured timetable known as “managed migration”, Wales Online reports.

Managed migration, which formally began in April 2023, is the process of gradually shifting all existing legacy benefit claimants to Universal Credit. This effort has been rolling out regionally, with each group receiving tailored instructions on how and when to make the transition.

Notably, the transition for around 800,000 claimants who receive income-related ESA, either on its own or alongside Housing Benefit, has been brought forward.

Originally not scheduled until 2028 or 2029, this group began receiving migration notices in September 2024.

The DWP now plans to notify all ESA claimants by December 2025.

The DWP has released a detailed schedule outlining when different groups will be affected:

• April 2024: Notices sent to households receiving Income Support, Income Support with Housing Benefit, and Tax Credits with Housing Benefit.

• June 2024: Households on Housing Benefit only began receiving notices.

• July 2024: Notices issued to those receiving ESA with Child Tax Credits.

• August 2024: Tax Credit claimants over state pension age invited to apply for Universal Credit or Pension Credit.

• September 2024: Rollout begins for claimants of income-based JSA and income-related ESA without Child Tax Credits.

• December 2025: All income-related ESA and ESA with Housing Benefit claimants to be notified.

• March 2026: All legacy benefits to be fully shut down.

The DWP is stressing the importance of responding to migration notices within the allotted three-month window. Those who fail to act could lose their entitlement to benefits, risking financial hardship.

A DWP spokesperson said: “Our priority is ensuring a smooth transition for all claimants. We urge everyone receiving a migration notice to act promptly to avoid any disruption to their payments.”