Key Takeaways
Between now and July 2026, most legacy benefits are being replaced by universal credit. The DWP is sending Migration Notice letters to people still on older benefits, and you must act by the deadline on your letter to keep your financial support.
The six benefits changing to universal credit are: income-based Jobseeker's Allowance, income related employment and support allowance, Income Support, housing benefit (for working-age people), Working Tax Credit, and Child Tax Credit.
Some benefits do not move into universal credit and continue alongside it, including child benefit, disability living allowance, and personal independence payment.
If you are eligible for universal credit, you must normally claim online by the deadline on your Migration Notice. If you miss it, your existing benefits will stop and you could lose money.
Before you apply for universal credit, use an up-to-date benefits calculator and consider getting independent advice. This helps you understand whether you will receive more, less universal credit, or roughly the same as your current payments.
Introduction: How The Benefits System Is Changing
Universal credit is gradually replacing several older means tested benefits across England, Scotland, and Wales. Universal credit changes are planned for 6 April 2026, and most legacy benefits will stop in July 2026 as the managed migration process reaches its final stages. Universal credit is designed for working-age people on low income or out of work, bringing multiple payments together into a simpler system.
You usually cannot choose to stay on legacy benefits long term. When the DWP decides it is time for you to move, the government will notify claimants about migration to universal credit through a formal letter. Once you receive that letter, you must claim for universal credit to keep receiving financial support. A single monthly payment consolidates various benefits into one monthly payment, paid directly into your bank account.
This article focuses on which benefits are changing, who is affected (including people with a disability or health condition, families with children, and older working-age couples), and what you should do when asked to claim universal credit. Later sections cover eligibility rules, how income and savings affect your universal credit award, what extra money may be available if you have limited capability for work, and what happens if you are in the armed forces or have specific circumstances.
Which Benefits Are Being Replaced By Universal Credit?
Universal credit replaces six older benefits. If you currently receive any of the following, you will be asked to move:
Income-based Jobseeker's Allowance (JSA) - sometimes called style jobseeker's allowance in its "new style" form, but the income-based version is the one being replaced
Income-related Employment and Support Allowance (ESA) - the means-tested version, often referred to as support allowance in conversation
Income Support
Housing Benefit - for working-age people (not those in certain supported or temporary accommodation)
Working Tax Credit
Child Tax Credit
When you claim universal credit, these income-related benefits usually stop. Claiming universal credit stops your entitlement to previous benefits, and they are replaced by a single monthly universal credit payment for your household. You do not get to pick and choose which legacy benefits to keep.
There is an important distinction here. Contribution-based or new style employment and support allowance and new style Jobseeker's Allowance are separate benefits based on national insurance contributions. These are not means tested in the same way and can sometimes be paid at the same time as universal credit. However, any money you receive from them usually counts as income and may reduce your universal credit payments.
If you and your partner have both reached state pension age, you will not move to universal credit. You may instead continue to claim pension credit or other benefits for pensioners. However, if you are part of a mixed age couple (where one partner is under state pension age and one has reached state pension age), you are usually expected to move onto universal credit instead of Pension Credit.
One transitional rule worth knowing: people currently on tax credits with more than £16,000 in savings may still be able to get universal credit for up to 12 months after they move, provided the DWP has confirmed this in their migration notice. This is a temporary relaxation of the normal savings rules and only applies during managed migration.
Which Benefits Stay Outside Universal Credit?
Not every benefit is being absorbed into universal credit. The following benefits are not replaced and can usually be paid alongside it:
Child Benefit - continues as a separate payment
Disability Living Allowance (DLA) - for children and some adults
Personal Independence Payment (PIP) - for adults with long-term health conditions
Attendance Allowance - for people over state pension age
Carer's Allowance - though it interacts with universal credit
War pensions and armed forces compensation schemes
These disability and care-related benefits are meant to help with the extra living costs of a disability or health condition. They do not normally stop when you claim universal credit.
However, some of these benefits affect how much universal credit you receive. Carer's Allowance, for example, counts as income and is deducted pound for pound from your universal credit award. Certain occupational pensions work the same way. On the other hand, you can claim universal credit alongside child benefit without reduction, and disability living allowance and personal independence payment usually do not reduce your universal credit amount either.
Council tax reduction is also not part of universal credit. You must still apply separately to your local authority if you need help with council tax after you move. This is handled by your local council, not the DWP.
Here is a quick comparison to make the differences easy to scan:
Replaced by Universal Credit | Stays Separate from Universal Credit |
|---|---|
Income-based JSA | Child Benefit |
Income-related ESA | Disability Living Allowance (DLA) |
Income Support | Personal Independence Payment (PIP) |
Housing Benefit (working-age) | Attendance Allowance |
Working Tax Credit | Carer's Allowance |
Child Tax Credit | War pensions / Armed forces compensation |
Council Tax Reduction |
Who Is Affected By The Move To Universal Credit?
Most working-age people who currently get one of the legacy benefits listed above will eventually be required to move to universal credit. This happens either through the managed migration process (after receiving a migration notice) or when their circumstances change and they need to make a new claim.
This includes people who are:
Unemployed and looking for work
In low-paid work or on a low income
Self employed with fluctuating earnings
Carers looking after a disabled person
People with a disability or health condition who currently receive income-related ESA or Income Support
If you are a british or irish citizen living in the UK, you usually meet the basic immigration status conditions for universal credit. You still need to be "habitually resident" and actually living in England, Scotland, or Wales when you apply.
EU, EEA, and Swiss citizens, and some other migrants, may need settled or pre settled status and a qualifying right to reside to be eligible for universal credit. People who came to the UK under the eu settlement scheme should check their status carefully. Those with "no recourse to public funds" on their visa are normally not allowed to claim.
Special rules can also apply if you are in the armed forces, a Crown servant posted overseas, or part of a mixed age couple where only one partner has reached state pension age. If any of these situations apply, it is worth seeking specific advice before you make a move.
Eligibility Rules When You Claim Universal Credit
To be eligible for universal credit, you generally need to meet these conditions:
You must be aged 18 or over to claim universal credit (with limited exceptions for some 16- and 17-year-olds)
You must be under state pension age
You must live in the UK
You can claim universal credit if you have less than £16,000 in savings and investments
You won't qualify for universal credit with savings over £16,000 in most circumstances, unless you are being moved from tax credits under the special transitional rules described earlier.
How savings affect your claim
Savings under £6,000 have no effect at all on your universal credit eligibility or the amount you receive. Savings over £6,000 reduce universal credit payments using a formula called "tariff income." For every £250 (or part of £250) above £6,000, the DWP treats you as having £4.35 per month of extra income.
For example, if you have £8,000 in savings, that is £2,000 above the £6,000 threshold. Divide £2,000 by £250 to get 8 units. Multiply 8 by £4.35 and you get £34.80 per month deducted from your universal credit award.
Household assessment and joint claims
Universal credit looks at your household. If you live with a partner, you must usually make a joint claim, and the DWP will assess both your incomes, savings, and partner's income together. This applies regardless of whether both of you are working or only one of you is. To make a joint claim, each partner creates their own universal credit account and links them using a partnership code.
Exceptions for younger claimants and students
You can claim universal credit if you're 16 or 17 under certain conditions: for example, if you are responsible for a child, are pregnant, have been assessed as having limited capability for work, or have no parental support. If you are a young person in full time education, you generally cannot claim universal credit unless you meet one of these specific exceptions or have a disability or health condition that qualifies.
Current rates (2026/27)
These figures apply from 6 April 2026 and may change each April:
Claimant type | Monthly standard allowance |
|---|---|
Single person under 25 | £338.58 |
Single person 25 or over | £424.90 |
Joint claimants both under 25 | £528.34 |
Joint claimants where one or both are 25 or over | £666.97 |
The universal credit standard allowance for singles over 25 is £424.90. Couples over 25 receive a standard allowance of £666.97. On top of the standard allowance, you may receive extra elements for children, housing costs, caring responsibilities, or a disability or health condition.
What Happens To Specific Benefits When You Move To Universal Credit?
Each legacy benefit is handled slightly differently when you move. Here is what to expect:
Income-based JSA
Your income-based Jobseeker's Allowance stops when you submit a valid universal credit claim. It is replaced by your universal credit standard allowance, plus any extra elements you qualify for. If you also receive new style employment and support allowance or contribution-based JSA, those can continue alongside universal credit, but the income from them will be deducted from your award.
Income-related ESA
If you currently get income related employment and support allowance and have already been assessed as being in the "support group," your work capability assessment result may be carried across to universal credit without a new assessment (provided there is no break in your claim). This means you could continue to receive the equivalent of the limited capability for work and work-related activity element within universal credit.
Income Support
Income Support stops on the day you claim universal credit. The financial support it provided is absorbed into your universal credit payment.
Housing Benefit
Your housing benefit for working-age people stops and is replaced by the housing element within universal credit. This means your housing costs are now included in your single monthly payment rather than being paid separately. You may need to tell your landlord about the change and check that your rent is paid correctly. In some cases, you can ask for rent to be paid direct to your landlord, especially in Scotland or Northern Ireland, where different payment options may be available. You still need to pay rent on time, and delays in your first universal credit payment could affect this.
Working Tax Credit and Child Tax Credit
Both tax credits stop once you claim universal credit. They are replaced by a combination of the standard allowance plus child elements and, where relevant, the childcare element of universal credit. Universal credit provides support for childcare costs up to 85% of eligible expenses, with maximum monthly caps depending on how many children you have.
Severe Disability Premium
Some people who previously received a severe disability premium may be entitled to transitional protection when moving to universal credit. If you receive severe disability premium in your legacy benefits, transitional payments may be available during the changes. This tops up your universal credit award so you do not immediately lose out, but the extra amount can reduce over time if your circumstances change.
Disability benefits alongside Universal Credit
People who currently get disability-related benefits such as disability living allowance, PIP, or industrial injuries benefits will normally keep these alongside universal credit. In some cases, receiving one of these benefits can increase your universal credit through extra disability elements, or entitle you to a higher work allowance before the taper rate kicks in.
If your housing costs are currently paid through housing benefit, make sure you understand how the switch works. Contact your landlord and your local authority care team if needed to make sure your rent continues to be covered without gaps.
How Income, Savings And Other Benefits Affect Your Universal Credit
Universal credit is means tested. Your award is built from a standard allowance plus extra elements (for children, housing costs, caring, and health conditions), and then income and savings are deducted to calculate the final amount. How much universal credit you actually receive depends on your household circumstances.
How earnings affect your payment
There is no fixed income limit for universal credit. Instead, universal credit reduces by 55p for every £1 earned above any work allowance you may have. Work allowances apply if you have children or a disability or health condition that gives you limited capability for work. The work allowance is approximately £427 per month if your claim includes a housing costs element, or around £710 per month if it does not.
This means universal credit allows you to increase hours or earnings without immediately losing all benefits. The 55% taper rate ensures that working always leaves you better off than not working, pound for pound.
If you earn over £22,020, you may face a benefits cap, which limits the total amount of benefits your household can receive. Certain exceptions apply, such as if you or your partner receive disability-related benefits or are in receipt of Carer's Allowance.
Self-employment and the minimum income floor
If you are self employed, be aware of the minimum income floor. After an initial start-up period, the DWP may assume you are earning at least the equivalent of the National Minimum Wage for the hours you are expected to work, even if your actual earnings are lower. This assumed income is used to calculate your universal credit, and it can mean receiving less universal credit than you might expect during quiet months.
How other benefits affect your payment
Income from some other benefits reduces your universal credit pound for pound:
New style employment and support allowance
Carer's Allowance
Most private or occupational pensions (including income from your pension pot if you have started drawing it)
Income from child benefit and disability living allowance does not usually reduce your universal credit payment.
Savings rules recap
Under £6,000: no effect
£6,001–£16,000: tariff income of £4.35 per £250 or part thereof
Over £16,000: usually not eligible for universal credit
Example calculation
Suppose you are a single person aged 30, working part-time and earning £600 per month net. You have one child (born after April 2017) and pay £500 per month in rent. Your savings are £3,000.
Component | Monthly amount |
|---|---|
Standard allowance (single, 25+) | £424.90 |
Child element (one child) | £303.94 |
Housing element (rent minus any deductions) | ~£403.45 |
Total before deductions | ~£1,132.29 |
Less: earnings taper (£600 − £427 work allowance = £173 × 55%) | −£95.15 |
Estimated Universal Credit payment | ~£1,037.14 |
This is a simplified illustration. Your actual award depends on your exact circumstances, local housing allowance rates, and whether you qualify for extra elements. Universal credit payments are paid monthly into your bank account, so budgeting carefully matters.
Extra Universal Credit Help If You Have A Disability Or Health Condition
If a disability or health condition limits your ability to work, you may be able to get extra money through a limited capability for work element, or a "limited capability for work and work-related activity" element, as part of your universal credit.
Work Capability Assessment
When you apply for universal credit, you should declare any health condition that affects your ability to work. Most people will then be asked to attend a work capability assessment. This assessment decides which group you fall into:
Limited capability for work - you can do some work-related activity but have restrictions
Limited capability for work and work-related activity - your condition is more severe, and you are not expected to prepare for work
Both groups receive an additional monthly element on top of the standard allowance. The higher group (limited capability for work and work-related activity) currently attracts a significantly larger payment.
DLA, PIP, and Attendance Allowance
These extra disability elements within universal credit are separate from disability living allowance, personal independence payment, or Attendance Allowance. You may be entitled to claim those benefits in addition, to help cover the extra costs of your condition. Receiving PIP or DLA does not reduce your universal credit.
Carers
If you are a carer looking after someone who gets certain disability benefits (such as PIP daily living component or DLA middle or higher rate care), you can qualify for the carer element within your universal credit claim. This is currently £209.34 per month (2026/27 rate). You may also be able to claim Carer's Allowance separately, but remember that Carer's Allowance counts as income and is deducted from your universal credit.
Provide as much medical evidence as possible when declaring a health condition. Contact a welfare rights adviser if you are unsure how your condition affects your universal credit entitlement. Getting the right evidence submitted early can prevent delays and incorrect decisions.
Moving From Legacy Benefits To Universal Credit: What You Need To Do
Here is what happens, step by step, when you are told to move:
You receive a migration notice from the DWP. This letter tells you that your legacy benefits are ending and gives you a deadline (usually three months from the date on the letter) to claim universal credit.
You claim universal credit before the deadline. If you act by the deadline, you may be entitled to transitional protection. This means that if your universal credit entitlement is lower than what you were previously receiving, a top-up is added so you do not lose money at the point of migration. Transitional protection may be provided if your universal credit entitlement is lower than previous benefits.
Your legacy benefits stop. Once your universal credit claim is accepted, your existing benefits end.
You wait for your first payment. Your first payment is usually five weeks after applying. This is your first assessment period. If you need money sooner, you can ask for an advance payment, which is then repaid from future universal credit payments. Make sure you have enough money to cover basic living costs during this gap.
The government will notify claimants about migration to universal credit in writing. You do not need to act until you receive your letter, but you should not ignore it when it arrives. Transitional payments may be available during the changes, but only if you claim by the deadline on your migration notice.
Important warnings
Do not voluntarily move from legacy benefits to universal credit without first checking you will be better off. Once you move, you usually cannot go back. This is especially important if you receive disability-related premiums, a severe disability premium, or have fluctuating earnings.
People in Northern Ireland and Scotland may have different payment options, such as twice-monthly payments or paying rent direct to a landlord. Check the latest guidance for your nation.
Keep copies of all letters. Report any changes in circumstances promptly (such as if your circumstances change - new job, a baby, moving house) to avoid overpayments or underpayments once you are receiving universal credit.
How To Apply For Universal Credit When Your Benefits Change
Most people must apply for universal credit online through the official GOV.UK service. You can claim online by visiting the universal credit page and starting a new claim. Here is what the process looks like:
Step-by-step
Create an account. You need to create an account to start your claim. You will set up a universal credit account with your email address, phone number, and a password.
Complete your to-do list. You will need to provide personal information during your claim, including details about your income, savings, rent, children, and immigration status. You may encounter a uk performing security verification step or security service check to confirm your identity - this is normal. Once security verification is successful, you continue with your claim.
Make a joint claim if needed. If you live with a partner, you must both create separate accounts and link them with a partnership code.
Attend an interview. You must attend an interview with a work coach after applying. At this interview, you will agree a claimant commitment setting out what you need to do to keep getting universal credit, such as job-searching, attending training, or meeting health-related conditions.
Provide evidence. Bring proof of identity, your tenancy agreement, recent payslips, and bank account details.
Checklist: what to have ready before you start
National Insurance number
Bank account details (your universal credit is paid into this account)
Proof of identity (passport, driving licence)
Proof of rent or mortgage
Details of any savings, investments, or pension pot
Details of any children and their dates of birth
Recent payslips or proof of self-employed earnings
Any medical evidence if you have a health condition
Your partner's details if making a joint claim
If you cannot use a computer or smartphone, you can call the universal credit helpline to get help making a claim. The helpline also offers support for people who need british sign language interpretation. Organisations such as Citizens Advice "Help to Claim" and local advice agencies can guide you through the process step by step.
Delays in providing information can delay payments. Complete everything as quickly and accurately as possible.
What Other Support Can You Get Alongside Universal Credit?
Even after you move to universal credit, you may still qualify for extra financial help:
Discretionary housing payments - from your local council, if your housing element does not cover all your rent
Council tax reduction - apply separately to your local authority care office
Local welfare schemes - emergency grants or loans for one-off costs, depending on where you live
Charity grants - many charities offer one-off payments for people on a low income
Families and children
Families on universal credit could be eligible for:
Free school meals
Healthy Start vouchers
Social tariffs for broadband and mobile data
Help with health costs such as prescriptions, dental treatment, and eye tests (if you meet the income rules)
Budgeting Advances
People on universal credit may also be able to apply for Budgeting Advances to help with one-off expenses such as replacing a broken appliance or covering emergency travel. These are repaid through future universal credit payments, so consider carefully whether you can manage the repayments.
Armed forces families
Members of the armed forces and their families can often get specialist advice. In some cases, you may be able to claim universal credit while posted overseas using a UK address, as long as you meet the rules set out in the official guidance. War pensions and armed forces compensation payments are generally disregarded when calculating your universal credit, so they should not reduce your award.
Getting the most from your claim
Use a reputable benefits calculator to check all the extra money and concessions you might be entitled to once on universal credit. Independent welfare rights advice can help you identify support you might otherwise miss, from local authority care help to malicious bots-free online tools run by trusted organisations. Taking the time to check can mean the difference between scraping by and having enough money to cover your basic living costs and more.
Frequently Asked Questions
Which benefits are definitely changing to Universal Credit?
The main benefits being replaced are income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Income Support, housing benefit for most working-age renters, Working Tax Credit, and Child Tax Credit. These will usually stop once a valid universal credit claim is made. Contribution-based (new style) versions of JSA and ESA are not being replaced and can continue alongside universal credit.
Will I lose my Disability Living Allowance when I claim Universal Credit?
Disability living allowance (and its replacement, personal independence payment) is separate from universal credit. It does not normally stop just because you move to universal credit, and DLA and PIP usually do not reduce your universal credit amount. In fact, receiving these benefits can sometimes increase your universal credit by qualifying you for extra disability elements or a higher work allowance.
Can I still get Child Benefit if I move to Universal Credit?
Child benefit is not part of universal credit and continues as a separate payment when you claim universal credit. It does not usually affect how much universal credit you receive - child benefit is not counted as income for the purposes of calculating your universal credit award.
Do I have to be a British or Irish citizen to claim Universal Credit?
You do not have to be a british or irish citizen, but you must have an immigration status that allows access to public funds. You also need to meet the habitual residence test. For many EU, EEA, or Swiss citizens, this means having settled or pre settled status with a qualifying right to reside. People with "no recourse to public funds" conditions on their visa are normally not able to get universal credit.
What should I do if I think I will be worse off on Universal Credit?
Before making a voluntary claim, use an up-to-date benefits calculator and, if possible, speak to an independent adviser such as Citizens Advice or a local welfare rights service. Once you move to universal credit, you generally cannot return to legacy benefits, even if you receive less money overall. If you are being moved through the managed migration process and your new universal credit entitlement is lower, transitional protection should top up your award - but only if you claim by the deadline on your migration notice. If you are a severely disabled person or receive the severe disability premium, getting advice before you move is especially important.
