Brits in receipt of a certain benefit are set to see changes next year. People on income related Employment and Support Allowance (ESA) will move to Universal Credit.
The Department for Work and Pensions (DWP) has recently confirmed its intention to transition all claimants on income-related ESA to Universal Credit by March of the coming year. Sir Stephen Timms, Minister for Social Security and Disability, also indicated that this migration process will involve moving ESA claimants to the Universal Credit Health Element.
His remarks were made in a written reply to Labour MP Amanda Martin, who queried whether claimants with disabilities receiving the Personal Independence Payment (PIP) and legacy work-related benefits would be “treated as new claimants for the purposes of the proposed changes to the Health Element of Universal Credit when they are migrated”.
The MP for Portsmouth North also questioned whether those on legacy benefits transitioning to the Universal Credit system might “see a reduction in their income as a result of these proposed changes”.
In response, the DWP minister stated: “The Department plans to complete migration of ESA claimants to Universal Credit by March 2026. As part of this ESA claimants will be migrated to the Universal Credit Health Element. To protect any claimants who have not migrated by April 2026 we intend to mirror as closely as possible the changes made in Universal Credit in the ESA rates.
“Changes to the ‘support component’ and the two disability premia (severe and enhanced disability premium rates) will reflect changes to Universal Credit LCWRA (Limited Capability for Work and Work-Related Activity) rates for existing claimants.”
He further stated: “Including these commensurate measures aims to give fair treatment for all customers moving onto Universal Credit from income related ESA, regardless of their point of migration.”
The DWP has previously announced that nearly four million households are set to experience an annual income increase estimated at £725 under a new Bill designed to revamp the welfare system.
The proposed reforms in the Universal Credit Bill aim to recalibrate the core payment and health top-up within Universal Credit. The Bill proposes a permanent rise above inflation for the Universal Credit standard allowance, equating to a cash increase of £725 by 2029/30 for a single individual aged 25 or over.
According to the Institute for Fiscal Studies (IFS), this represents the most significant real terms increase to the main rate of out-of-work support since 1980.
The Universal Credit Bill
The DWP indicated that the rebalancing of Universal Credit’s health and standard elements is intended to rectify a “fundamental imbalance” in the system which encourages “dependency” through:
- Increasing the Universal Credit standard allowance above inflation for the next four years – worth an estimated £725 by 2029/30 for a single adult aged 25 or over
- Reducing the health top-up for new claims to £50 per week from April 2026
- Ensuring that all existing recipients of the Universal Credit health element – and any new claimant meeting the Severe Conditions Criteria and/or that has their claims considered under the Special Rules for End of Life (SREL) – will receive the higher Universal Credit health payment after April 2026
- Exemptions from reassessment for those with the most severe, lifelong conditions
The DWP stated that these reforms aim to rectify the “fundamental imbalance in the system which creates perverse incentives that drive people into dependency”.
The bill successfully passed through the House of Lords in July and will now proceed for Royal Assent.
In addition to these changes, the DWP has introduced significant new measures, granting individuals receiving health and disability benefits the right to attempt work without fear of reassessment.
This new ‘Right to Try Guarantee’ encompasses individuals with a disability or health condition – such as those recovering from illness – who wish to return to work now that their health has improved.
All current and new claimants of the Universal Credit Health Element, who have 12 months or less to live or satisfy the Severe Conditions Criteria, will witness their standard allowance merge with their Universal Credit health component. This increase will be at least in line with inflation annually from 2026/27 to 2029/30.
The DWP commented to say: “This means they can live with dignity and security, knowing the reforms to the welfare system mean it will always be there to support them.”
Moreover, the DWP is placing disabled individuals at the forefront of a ministerial examination of the PIP assessment process, say officials. This review is spearheaded by Disability Minister Sir Stephen Timms and will be developed in collaboration with disabled people, their representative organisations, specialists, MPs, and other interested parties, ensuring it is equitable and suitable for the future.
The DWP stated: “We will be engaging widely over the summer to design the process for the review and consider how it can best be co-produced to ensure that expertise from a range of different perspectives is drawn upon.
“These reforms are underpinned by a major investment in employment support for sick and disabled people – worth £3.8 billion over the Parliament. Funding will be brought forward for tailored employment, health and skills support to help disabled people and those with health conditions get into work as part of our Pathways to Work guarantee.”
The DWP added: “This investment will accelerate the pace of new investments in employment support programmes, building on and learning from successes such as the Connect to Work programme, which are already rolling out to provide disabled people and people with health conditions with one-to-one support at the point when they feel ready to work.”
