New DWP update for benefit claimants ahead of major changes next April

The Department for Work and Pensions (DWP) has delivered an update affecting those who face substantial changes to their benefits next April. The DWP recently confirmed its plan to transition claimants on income-related Employment and Support Allowance (ESA) to Universal Credit.

Sir Stephen Timms, Minister for Social Security and Disability, has also confirmed that this transition will include shifting ESA recipients to the Universal Credit Health Element. This information was shared in a written response to Labour MP Amanda Martin's query about whether those 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 Portsmouth North MP also questioned whether those on legacy benefits transferring to the Universal Credit system would "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 went on to explain: "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 4 million households are set to see an annual income boost estimated to be worth £725 under a new Bill designed to revamp the welfare system, reports the Daily Record. The proposed reforms in the Universal Credit Bill aim to rebalance the core payment and health top-up in Universal Credit.

The Bill proposes a permanent rise above inflation for the Universal Credit standard allowance, amounting to £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 highest permanent real-terms increase to the main rate of out-of-work support since 1980.

Alongside these developments, the DWP has unveiled substantial new measures, granting people receiving health and disability benefits the right to try work without fear of reassessment. The new 'Right to Try Guarantee' encompasses people with a disability or health condition - such as those recovering from illness - who wish to return to employment now their health has improved.