DWP legacy benefits due to end by March 2026 – what it means for you

A deadline is approaching for anyone still claiming a legacy benefit from the Department for Work and Pensions (DWP), with payments due to end by 31 March 2026.

If you’re affected, you’ll need to move to universal credit by the date in your migration letter to avoid your payments stopping. 

Legacy benefits are older benefits being phased out as part of the move to universal credit. The DWP says most legacy benefit claimants have already been contacted, with the final letters now going out to people claiming employment and support allowance (ESA). 

Here, Which? explains what’s changing, who needs to act and what to do next.

What are legacy benefits and why are they ending?

In 2012, the government announced plans to replace the legacy benefit system with a single payment, universal credit. The aim was to simplify the system by bringing several types of financial support together.

The benefits being phased out as part of this change are:

• Tax credits
• Income-based jobseeker's allowance (JSA)
• Income support (IS)
• Housing benefit
• Income-related employment and support allowance (ESA).

The process started in July 2022 following a pilot programme in 2019. Initially, the former Conservative government planned to have the move completed by 2028. However, in April 2024, this deadline was brought forward to March 2026.

Tax credits closed to ongoing claims in April 2025, while universal credit has already replaced all new claims for income support and income-based JSA. Most people still receiving these benefits have already been asked to move over.

People claiming ESA are now being contacted as part of the final phase of the move to universal credit. 

Universal credit’s housing element has also replaced most new claims for housing benefit. However, if you live in supported or temporary accommodation, you can still claim housing benefit through your local council, even if you receive universal credit for other living costs.

If you have reached state pension age, you're not affected by the move to universal credit and can still claim housing benefit in the usual way if you need help with rent.

• Find out more: what is universal credit?

When will you move over to universal credit?

The DWP is moving people across to universal credit through a process known as managed migration. This involves sending you a letter called a migration notice, which explains when and how you need to make a claim.

You're not automatically moved over. Once your letter arrives, you’ll have three months to submit a universal credit claim by the deadline shown. If you don’t apply by that date, your legacy benefits will stop.  

Currently, it takes around five weeks to receive your first universal credit payment. Some legacy benefits continue for a short period after you make a claim to help bridge the gap, but it’s still important to act as soon as you receive your letter to avoid missing out. 

• Find out more: how much universal credit will I get

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What if my universal credit payments are lower?

According to a 2022 DWP analysis, 55% of legacy benefit claimants will be better off under universal credit, while 35% would have a lower entitlement.  

To help those receiving less, the DWP has transitional protection in place. This tops up your universal credit payment to match what you were previously receiving and is applied automatically to your claim.

For example, if your legacy benefit paid £800 a month but you're only entitled to £600 a month under universal credit, you would receive a £200 top-up.

These payments remain in place until your universal credit entitlement reaches the same level as your previous benefits, or you have a significant change in circumstances. However, you will not be entitled to transitional protection payments if:

• You claim before you receive a managed migration notice.
• You submit a claim after your personal deadline.

If you're unable to claim before your deadline, you should contact the universal credit migration notice helpline as soon as possible. In some cases, the DWP can give you extra time to claim while keeping you eligible for transitional protection. 

However, if you miss this deadline, don't worry. You have a one-month grace period. If you claim within this month, it means your application is automatically backdated and you remain eligible for transitional protection. If you miss this, you won't be able to get the transitional protection.

• Find out more: two-child benefit cap to be lifted from April 2026

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Is pension credit affected by the move to universal credit?

Pension credit is not affected by the move to universal credit and will remain in place.

However, some people are concerned about what will happen to housing benefit, which can form an important part of the support that pension credit claimants receive to help cover rent.

The government has said it plans to bring pension credit and housing benefit closer together to streamline support. This is due to happen at some point in 2026.

Until then, housing benefit will remain in place for people who have reached state pension age, and you can continue to claim it through your local council if you need help with rent.

Following the phase-out of child tax credit, pension credit can include additional amounts for dependent children.

• Find out more: pension credit explained