DWP Universal Credit Milestone Update: What Changed in 2026?

The DWP Universal Credit milestone update confirms that the long-running move from legacy benefits has reached its final stage.

Tax credits had already closed in 2025, while Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance and most working-age Housing Benefit awards ended during 2026.

This does not mean Universal Credit has ended. Universal Credit remains the main means-tested benefit for working-age households. It also received significant payment and eligibility changes from April 2026.

The milestone refers to the completion of the DWP’s programme to move claimants from six legacy benefits to Universal Credit.

The main developments are:

• Tax Credits Closed In April 2025
• Income Support And Income-Based JSA Ended In March 2026
• Income-Related ESA And Most Working-Age Housing Benefit Awards Reached Their Final Closure Stage In June 2026
• Universal Credit Standard Allowances Increased In April 2026
• The Two-Child Limit Ended On 6 April 2026
• Two Different LCWRA Health Element Rates Were Introduced
• Additional Employment Support Became Available For Younger Claimants

Some benefits, including Personal Independence Payment and New Style ESA, have not been replaced by Universal Credit.

Last Updated: 04.09.2026

What Does the Universal Credit Milestone Mean?

Universal Credit was introduced to replace six separate means-tested benefits with one monthly payment. These legacy benefits were:

• Working Tax Credit
• Child Tax Credit
• Income Support
• Income-Based Jobseeker’s Allowance
• Income-Related Employment And Support Allowance
• Housing Benefit For Most Working-Age Claimants

The DWP sent Migration Notices to households still receiving these benefits. Each notice provided a deadline for submitting a Universal Credit claim.

The main managed-migration exercise was substantially completed by the end of March 2026. However, the legal closure of most remaining working-age Housing Benefit awards took place on 30 June 2026, with the relevant rules applying from 1 July.

Universal Credit itself has not been abolished or replaced. References to benefits “ending” relate to the older benefits that Universal Credit was designed to replace.

Universal Credit Changes in 2025 vs 2026

Year	Main Development	What It Meant for Claimants
2025	Tax Credits Closed	Remaining tax credit claimants generally had to move to Universal Credit or Pension Credit
2025	Migration From Other Legacy Benefits Accelerated	More Income Support, JSA, ESA and Housing Benefit claimants received Migration Notices
2026	Income Support And Income-Based JSA Ended	Remaining awards were replaced by Universal Credit
2026	Income-Related ESA Migration Reached Its Final Stage	Most remaining claimants moved to Universal Credit
2026	Working-Age Housing Benefit Closed	Most general-needs Housing Benefit awards ended, subject to exceptions
2026	Universal Credit Rates Changed	Standard allowances increased and two LCWRA rates were introduced
2026	Two-Child Limit Ended	Universal Credit could include a child amount for every eligible child

The key difference is that 2025 was mainly about accelerating migration, while 2026 brought both the final legacy-benefit closures and substantial changes to Universal Credit payments.

Which Legacy Benefits Have Now Ended?

Legacy Benefit	Closure Date	Position in 2026
Working Tax Credit	5 April 2025	Closed
Child Tax Credit	5 April 2025	Closed
Income Support	31 March 2026	Closed
Income-Based JSA	31 March 2026	Closed
Income-Related ESA	Final Migration Stage Reached In 2026	Replaced by Universal Credit for most claimants
Working-Age Housing Benefit	30 June 2026	Closed for most general-needs housing cases

These closures do not apply identically to every claimant. Contribution-based and New Style benefits are separate from the income-related legacy benefits replaced by Universal Credit.

Housing Benefit also remains available in certain accommodation and pension-age cases.

How Many Claimants Moved to Universal Credit?

The DWP’s final migration statistics show the scale of the programme up to the end of March 2026.

Migration Outcome	Individuals	Households
Sent A Migration Notice	2,353,319	1,822,374
Made A Universal Credit Claim	1,992,161	1,580,239
Did Not Claim And Had Legacy Benefits Closed	360,030	241,064
Still In Progress	1,131	1,073

Among households sent a notice, 87% made a Universal Credit claim. The remaining 13% did not claim before their legacy benefit was closed.

A total of 814,703 households were awarded transitional protection. This represented 53% of households recorded as eligible for protection.

The distinction between individuals and households is important. Couples can receive separate Migration Notices but usually make one joint Universal Credit claim.

What Happens If You Receive or Miss a Migration Notice?

A Migration Notice is a formal letter telling a claimant that one or more legacy benefits are ending. It is not simply a reminder or general Universal Credit information letter.

Claimants normally receive around three months to apply. The deadline is printed on the letter.

Migration Deadlines and Extensions

A claimant who cannot apply by the stated date should contact the Universal Credit Migration Notice Helpline before the deadline.

The DWP may allow more time where there is a good reason, such as illness, bereavement, difficulty accessing documents or a need for additional support.

The claim is not transferred automatically. The claimant or their authorised appointee must submit a Universal Credit application.

If the deadline is missed:

• Existing Legacy Benefit Entitlement Will End
• A Later Universal Credit Claim May Still Be Possible
• Normal Universal Credit Eligibility Rules Will Apply
• Transitional Protection May Be Lost
• Any Gap Between Claims Could Lead To Lost Income

The Migration Notice process also explains what information is required and how claimants can request support.

Transitional Protection

Transitional protection is intended to prevent an eligible managed-migration household from receiving less Universal Credit at the point it moves.

Where the calculated Universal Credit award is lower than the household’s previous benefit entitlement, a transitional element can be added to make up the initial difference.

It is normally applied automatically when someone:

• Receives A Valid Migration Notice
• Claims Universal Credit By The Deadline
• Meets The Relevant Eligibility Conditions

The protected amount is not permanently fixed. It can reduce as other Universal Credit elements or benefit rates rise. It can also end after certain changes, including the formation or breakdown of a couple.

A claimant who voluntarily applies for Universal Credit before receiving a Migration Notice will not normally qualify for managed-migration transitional protection.

Who Is Exempt From the Final Housing Benefit Closure?

Working-age Housing Benefit generally ended on 30 June 2026 for people living in ordinary rented accommodation. It did not disappear in every situation.

Housing Benefit may continue where a claimant:

• Lives In Temporary Accommodation Arranged By A Council
• Lives In Specified Or Supported Accommodation
• Is Over Pension Credit Qualifying Age
• Belongs To A Protected Mixed-Age Couple
• Was Receiving Income-Related ESA And Had Or Required An Appointee Immediately Before 1 July 2026
• Was In Prison, On Remand Or Serving A Sentence In Hospital Immediately Before 1 July 2026
• Was Completing The Two-Week Housing Benefit Run-On After Moving To Universal Credit

People in temporary or specified accommodation may receive Universal Credit for their ordinary living costs while continuing to receive Housing Benefit for eligible accommodation costs.

Someone moving out of supported or temporary accommodation may then need to claim the Universal Credit housing costs element instead.

How Long Does the Move to Universal Credit Take?

Submitting a Universal Credit claim starts a monthly assessment period. The first payment normally arrives approximately five weeks after the claim date.

Eligible claimants may continue receiving certain legacy benefits for another two weeks after claiming Universal Credit. This run-on does not normally need to be repaid and does not reduce the first Universal Credit award.

A typical migration timeline is:

1. The Claimant Receives A Migration Notice
2. The Universal Credit Claim Is Submitted Before The Deadline
3. Eligible Legacy Benefits Continue For Two More Weeks
4. The First Assessment Period Runs For One Month
5. Payment Is Usually Made Seven Days After The Assessment Period Ends

A Universal Credit advance may be available if the claimant cannot cover essential costs while waiting. An advance is a loan and is repaid through deductions from future Universal Credit payments.

People moving directly from ESA may not need new fit notes or another Work Capability Assessment where they have already completed an assessment and were in the ESA support group or work-related activity group.

A reassessment can still take place if a review is due or the person’s condition changes.

Universal Credit Payment Changes From April 2026

The standard allowance increased substantially for the 2026/27 benefit year.

Claimant Circumstances	2025/26 Monthly Rate	2026/27 Monthly Rate
Single And Under 25	£316.98	£338.58
Single And Aged 25 Or Over	£400.14	£424.90
Couple Both Under 25	£497.55	£528.34
Couple Where One Or Both Are 25 Or Over	£628.10	£666.97

These are standard allowance amounts before additions for children, housing, childcare, caring responsibilities or health conditions. Earnings, other income, capital, sanctions and deductions can reduce the final award.

The complete 2026/27 benefit rates also include updated child, childcare, carer and disability additions.

Removal of the Two-Child Limit

The Universal Credit two-child limit ended on 6 April 2026. Universal Credit can now include an additional child amount for every eligible child, rather than normally restricting support to the first two children.

Existing claimants did not need to submit a new Universal Credit claim. The additional amount should appear according to the dates of the household’s monthly assessment period.

However, the increase may not always be received in full. The benefit cap, earnings, deductions and other household circumstances can still affect the final payment.

Changes to the LCWRA Health Element

The limited capability for work and work-related activity element is now paid at two rates.

LCWRA Category	2026/27 Monthly Amount
Higher Protected Rate	£429.80
Lower Rate	£217.26

The higher amount can apply to pre-2026 claimants and people who meet severe-condition or end-of-life criteria. The lower amount generally applies to other claimants whose health condition was first reported on or after 6 April 2026.

Reporting a condition does not guarantee an LCWRA award. The claimant must meet the applicable assessment rules unless an exception applies.

What Has Not Ended in 2026?

Benefit	Position After the Universal Credit Milestone
New Style ESA	Continues For Eligible Claimants
New Style JSA	Continues For Eligible Claimants
Carer’s Allowance	Continues As A Separate Benefit
Council Tax Reduction	Continues Through Local Councils
Personal Independence Payment	Continues Separately From Universal Credit
Pension-Age Housing Benefit	Continues For Eligible Claimants
Housing Benefit In Supported Or Temporary Accommodation	Continues In Qualifying Cases

New Style ESA and JSA

New Style ESA and New Style JSA are contribution-based benefits linked to a claimant’s National Insurance record. They are different from the income-related versions replaced by Universal Credit.

A person may sometimes receive New Style ESA alongside Universal Credit. However, New Style ESA is usually treated as income when the Universal Credit award is calculated.

Carer’s Allowance and Council Tax Reduction

Carer’s Allowance has not been absorbed into Universal Credit. A claimant may qualify for both, although Carer’s Allowance normally affects the amount of Universal Credit paid.

Council Tax Reduction also remains separate. It is administered by local councils, and a Universal Credit claim does not automatically guarantee that council tax support has been correctly awarded.

Claimants may need to apply directly to their council.

What Happens to PIP When Moving to Universal Credit?

Question	Answer
Does PIP End During Migration?	No
Is PIP Part Of Universal Credit?	No
Can Someone Receive Both Benefits?	Yes
Does PIP Count As Earnings For Universal Credit?	No
Does A Universal Credit Claim Automatically Trigger A PIP Review?	No
Can PIP Still Be Reviewed Separately?	Yes

PIP Payments After Migration

Personal Independence Payment is based on how a long-term health condition or disability affects everyday activities and mobility. It is not one of the six legacy benefits replaced by Universal Credit.

PIP normally continues on its existing payment schedule when someone moves to Universal Credit.

The claimant should still check both awards after migration and report any relevant change through the correct benefit service.

PIP Reviews and Universal Credit Assessments

A PIP assessment and a Universal Credit Work Capability Assessment serve different purposes. Receiving one type of decision does not automatically guarantee the same outcome under the other system.

A person may therefore receive PIP without qualifying for the Universal Credit LCWRA element. Someone can also qualify for LCWRA without receiving PIP.

From 30 April 2026, starting work does not by itself trigger an immediate PIP review or Work Capability reassessment. Reviews can still take place when scheduled, when a relevant change is reported or where fraud is suspected.

What Is the Youth Guarantee for Universal Credit Claimants?

The Youth Guarantee Journey provides additional employment support for eligible Universal Credit claimants aged 16 to 24. Support can include access to jobs, training, apprenticeships, work experience and help from a work coach.

The separate Jobs Guarantee was initially designed for eligible people aged 18 to 21 who had been receiving Universal Credit and looking for work for 18 months.

It provides a fully subsidised six-month job for 25 hours per week at the relevant minimum wage.

Employment support for younger claimants has also expanded through Youth Hubs and employer incentives.

The Youth Jobs Grant provides eligible employers with £3,000 when recruiting certain 18-to-24-year-olds who have been unemployed and receiving Universal Credit for more than six months.

These initiatives are not automatic Universal Credit bonuses. They are employment programmes with separate eligibility requirements.

What Should Claimants Do Next?

Most households will already have completed the migration process. Anyone who still has a Migration Notice, unresolved legacy award or exceptional Housing Benefit case should check their position promptly.

Claimants should:

• Check The Deadline Printed On The Migration Notice
• Submit The Universal Credit Claim Before That Date
• Request An Extension Before The Deadline If More Time Is Needed
• Keep Copies Of Letters, Statements And Supporting Documents
• Check Whether Transitional Protection Has Been Included
• Confirm Whether Housing Benefit Should Continue
• Review The First Universal Credit Statement For Missing Elements
• Apply Separately For Council Tax Reduction Where Required
• Seek Independent Benefits Advice If The Award Appears Incorrect

The DWP Universal Credit milestone update marks the end of the main legacy-benefit system, not the end of Universal Credit.

The most important issue for individual claimants is whether their migration was completed correctly and whether every relevant housing, child, carer and health element has been included.

Frequently Asked Questions

Has Universal Credit Been Scrapped in 2026?

No. Universal Credit remains in place. The benefits ending in 2026 were the remaining legacy benefits that Universal Credit replaced.

Does Housing Benefit Still Exist?

Yes, but mainly for pension-age claimants and people living in qualifying supported or temporary accommodation. Most working-age Housing Benefit awards for ordinary rented homes ended on 30 June 2026.

Will an ESA Health Decision Transfer to Universal Credit?

It can transfer where the person moves directly from ESA without a break, has completed a Work Capability Assessment and was in the ESA support group or work-related activity group. A later reassessment may still be required.

How Long Do Claimants Have to Respond to a Migration Notice?

The letter usually provides around three months, but the exact deadline printed on the notice is the date that matters.

Is Transitional Protection Applied Automatically?

It is normally applied automatically when an eligible claimant receives a Migration Notice and claims Universal Credit by the stated deadline. Claimants should still check their first statement to ensure the award is correct.