Big changes are on the way for the UK’s benefits system — and if you’re one of the 500,000 households relying on certain payments, this is something you’ll want to pay attention to. The Department for Work and Pensions (DWP) has announced it’s scrapping four legacy benefits and moving everyone over to Universal Credit by the end of 2025–26.
If you’re not sure what that means for you, don’t worry — I’ve broken it down clearly so you’ll know what’s changing, who’s affected, when it’s happening, and what you need to do to stay ahead of it.
Benefits
Let’s start with the payments being phased out. The DWP has confirmed these four benefits will be discontinued:
- Working Tax Credit
- Child Tax Credit
- Income Support
- Income-Based Jobseeker’s Allowance (JSA)
If you’re receiving any of these, you’ll need to move to Universal Credit soon. In total, this change will impact around half a million households across the country.
Reason
So why’s this happening? The government’s goal is to simplify the welfare system by merging several payments into one monthly benefit — Universal Credit. It’s supposed to cut paperwork, tackle fraud, and make everything a little easier to manage.
Sounds good in theory, but in reality, the switch has been stressful for many, especially vulnerable people who’ve struggled with the process.
Timeline
Here’s when you can expect the changes to hit. The rollout’s happening in phases throughout 2025:
| Date | Who It Affects |
|---|---|
| March 2025 | Income-Based Jobseeker’s Allowance claimants |
| April 2025 | Income Support & Tax Credits with Housing Benefit |
| June 2025 | Housing Benefit-only recipients |
| July 2025 | ESA claimants who also get Child Tax Credit |
Once you receive a Migration Notice Letter, you’ll have three months to switch to Universal Credit. Miss that deadline, and your existing payments will stop — so it’s crucial to act quickly.
Groups
Certain groups are likely to feel these changes more than others. If you’re part of any of the following, it’s worth paying extra attention:
- Low-income working families
- Single parents
- People with disabilities
- Unemployed individuals
- Pensioners on tax credits
These households rely on stable benefits to cover essentials like rent and food, so any hiccups could have serious consequences.
PIP
And it’s not just Universal Credit that’s changing. Major updates are coming to Personal Independence Payment (PIP) as well. Starting in November 2026:
- You’ll need to score at least 4 points in a daily living activity to get the daily living component.
- Around 87 health conditions — including fibromyalgia and some mental health issues — might no longer mean automatic eligibility.
- Only those with severe, long-term conditions like advanced MS or motor neurone disease will be guaranteed ongoing financial support.
Disability groups have already voiced concerns, warning that stricter rules could leave thousands without the help they rely on.
Action
If you’re affected, here’s what you should do now:
- Watch out for your Migration Notice Letter — it’ll tell you when to apply.
- Make sure to apply for Universal Credit within three months of receiving it.
- Get free advice and support from places like Citizens Advice or Turn2Us.
- Check if you’re entitled to extra payments, especially if you’re disabled or a carer.
- Stay up to date on the PIP changes coming in 2026 and start gathering any medical documents you might need for a future claim.
Warnings
Experts, including the Resolution Foundation, are warning that 1 in 3 households could face payment problems during the transition to Universal Credit. Disability campaigners are also pushing for extra support for those hardest hit by both these benefit cuts and the tougher PIP rules.
Bottom line? Don’t wait for issues to catch you off guard. Get ahead of it — know your deadlines, check your eligibility, and get help early. A little prep now could save you a lot of stress later.
FAQs
Which benefits are being scrapped?
Working Tax Credit, Child Tax Credit, Income Support, and Income-Based JSA.
When will I get a migration letter?
Between March and July 2025, depending on your current benefit.
How long do I have to switch to Universal Credit?
You’ll have three months from the date on your Migration Notice Letter.
What help is available for my application?
Citizens Advice and Turn2Us offer free advice and application help.
What’s changing with PIP in 2026?
Tougher eligibility rules and over 80 conditions may lose automatic status.
