Thousands of benefit claimants have been handed a last-minute reprieve after ministers quietly pushed back a key deadline in a sweeping welfare overhaul.
The Department for Work and Pensions (DWP) confirmed it is extending the cut-off for some of the most vulnerable households to move off so-called “legacy benefits” and onto Universal Credit, easing fears that people could lose vital support. Officials had previously insisted the massive “managed migration” programme – shifting millions from older benefits to the newer system – would be completed by the end of March 2026.
But in a significant climbdown, the DWP now says some claimants will have until “the end of the summer” to make the switch. The delay applies to those receiving income-related employment and support allowance (ESA) and housing benefit, with ministers admitting extra time is needed to reach people who are harder to contact or face barriers to claiming.
The department said the move forms part of its “ongoing commitment to support and safeguard our most vulnerable customers”. It means thousands who risked having their payments stopped if they failed to act in time will now be given a further window to transfer to Universal Credit.
The migration programme – one of the biggest welfare reforms in decades – involves shutting down a raft of older benefits, including working tax credit, child tax credit, income-based jobseeker’s allowance, income support, ESA and housing benefit for working-age households.
So far, more than 1.9 million people have been moved onto universal credit, including 135,000 claimants previously on income support and income-related jobseeker’s allowance. However, watchdogs have repeatedly warned the process carries serious risks.
A 2024 report by the Public Accounts Committee cautioned that failures in the system could lead to “real-world misery for thousands”, with around 4% of claimants expected not to successfully transition.
As the original deadline loomed, ministers have stepped up support – including a dedicated helpline and home visits – to prevent vulnerable people slipping through the cracks.
Social security and disability minister Sir Stephen Timms said: “Our Move to Universal Credit campaign has been successful in moving over 1.9 million people from legacy benefits to the modern universal credit system.
“Vulnerable customers have been at the forefront of this campaign. In their interests, we are extending the deadline for income-related Employment Support Allowance claimants to move over.
“This Government is committed to updating the welfare system so that it promotes opportunity, rather than stifling it – as part of our Plan for Change.
“The campaign means the number of people on universal credit has increased, particularly the number of people who receive the benefit with no requirement to look for work, as, since June last year, the focus has been on moving vulnerable people from Employment and Support Allowance.”
Figures underline the scale of the shift
The number of people claiming UCt hit 8.34 million in December 2025 – up by nearly 1 million from 7.36 million a year earlier. More than three-quarters of that rise was driven not by new claims, but by existing benefit recipients being transferred across.
Universal Credit has been billed by ministers as a system that better reflects the modern jobs market and helps people move into work. But the overhaul comes against the backdrop of rising welfare costs, with further changes due this month.
From April, the health element of universal credit will be reduced in a bid to remove what ministers describe as “perverse incentives” and curb welfare dependency – a move expected to save almost £1 billion. At the same time, wider reforms to disability benefits have been delayed following political pressure.
A major review into personal independence payment (PIP) – which supports people with long-term health conditions or disabilities – is now under way, with any changes postponed until after its findings are delivered to Work and Pensions Secretary Pat McFadden in the autumn.