The DWP has confirmed that it plans to complete migration of claimants on income related Employment and Support Allowance (ESA) to Universal Credit by March
The Department for Work and Pensions (DWP) recently confirmed its intention to complete the transition of claimants on income-related Employment and Support Allowance (ESA) to Universal Credit by March.
Minister for Social Security and Disability, Sir Stephen Timms, also stated that part of this migration process will involve ESA claimants moving to the Universal Credit Health Element.
Welfare reforms set to be implemented in April aim to address these ‘perverse incentives’ by introducing a lower Universal Credit Health Element rate of £217.26 per month for new claimants, compared to the higher rate of £429.80.
Those with the most severe, lifelong conditions, those nearing end of life, and all existing Universal Credit health claimants will continue to receive the higher rate. The change does not affect existing claimants, only new applicants.
Sir Stephen’s remarks were made in a written response to Labour MP Amanda Martin, who queried whether claimants with disabilities, receiving the Personal Independence Payment ( PIP ) and legacy work-related benefits, will be “treated as new claimants for the purposes of the proposed changes to the Health Element of Universal Credit when they are migrated”.
The Portsmouth North MP also questioned whether claimants on legacy benefits transitioning to the Universal Credit system would “see a reduction in their income as a result of these proposed changes”, reports the Daily Record.
The DWP Minister responded: “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 added: “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 stated that nearly four million households will receive an annual income increase estimated at £725 under new legislation designed to reform the welfare system.
Changes outlined in the Universal Credit Act will aim to rebalance the core payment and health top-up within Universal Credit. The Act will result in the Universal Credit standard allowance rising permanently above inflation, totalling £725 by 2029/30 in cash terms for a single person aged 25 or over. According to the Institute for Fiscal Studies (IFS), this represents the largest permanent real terms increase to the main rate of out-of-work support since 1980.
The Universal Credit Act The DWP has announced a rebalancing of Universal Credit health and standard elements to address what it calls a ‘fundamental imbalance in the system which creates perverse incentives that drive people into dependency’. The Act recently received Royal Assent.
In addition to these changes, the DWP has introduced significant new measures, giving those receiving health and disability benefits the right to try work without fear of reassessment. This new ‘Right to Try Guarantee’ applies to individuals with a disability or health condition – such as those recovering from illness – who wish to return to work now their health has improved.
All current recipients of the Universal Credit Health Element and new customers with 12 months or less to live or who meet the Severe Conditions Criteria will also see their standard allowance combined with their Universal Credit health element rise at least in line with inflation every year from 2026/27 to 2029/30.

