In a major welfare reform, the Department for Work and Pensions (DWP) has confirmed the cancellation of four legacy benefits by the end of the 2025–2026 financial year.
The affected benefits include Working Tax Credit, Child Tax Credit, Jobseeker’s Allowance (JSA), and Income Support.
These cuts are part of the government’s broader move to transition all remaining claimants to Universal Credit (UC)—a streamlined system aimed at simplifying the UK’s welfare structure.
If you’re still receiving one of these legacy benefits, now is the time to prepare for the change. In this article, we break down who’s affected, what the updated payment amounts are, and how the transition process will unfold throughout 2025.
Which 4 Benefits Are Being Cancelled?
The following four benefits will be fully phased out by the end of 2025–26:
| Cancelled Benefit | Purpose | New System |
|---|---|---|
| Working Tax Credit | For low-income workers | Universal Credit |
| Child Tax Credit | For low-income families with children | Universal Credit |
| Jobseeker’s Allowance | For unemployed individuals actively seeking work | Universal Credit |
| Income Support | For those on low income not required to work | Universal Credit |
These changes will affect over 500,000 households, who must migrate to Universal Credit before their legacy benefits are stopped.
Why Is DWP Making These Changes?
The UK government’s long-term goal is to streamline the welfare system by combining multiple benefits into a single monthly Universal Credit payment. This simplifies benefit administration and ensures that support is delivered more consistently.
The move also aims to reduce fraud, improve work incentives, and create a unified support structure for all eligible citizens.
Updated Payment Rates Before Benefits Are Cancelled
To support legacy benefit claimants during the transition, the government has introduced new payment levels for the 2025–26 financial year. These increases are temporary adjustments and will be the final uplift before migration to Universal Credit.
Working Tax Credit Adjustments
| Element | Previous Rate | 2025 Rate |
|---|---|---|
| Basic Element | £2,280 | £2,435 |
| Couple/Lone Parent Element | £2,340 | £2,500 |
| Disabled Worker Element | £3,685 | £3,935 |
| Severe Disability Element | £1,595 | £1,705 |
| Childcare Costs | £175 (1 child), £300 (2+) | Unchanged |
Child Tax Credit Adjustments
| Element | Previous Rate | 2025 Rate |
|---|---|---|
| Family Element | £545 | £545 |
| Child Element | £3,235 | £3,455 |
| Disability Element (Standard) | £3,905 | £4,170 |
| Disability Element (Severe) | £1,575 | £1,680 |
These revised rates aim to cushion claimants as they prepare to move to Universal Credit later in the year.
Universal Credit Migration Timeline for 2025
The DWP has issued a detailed timeline for the transition process starting from May 2025:
| Date | Group Affected |
|---|---|
| April 2025 | Income Support and Tax Credit recipients with Housing Benefit |
| May 2025 | Jobseeker’s Allowance (JSA) claimants |
| June 2025 | Housing Benefit-only recipients |
| July 2025 | Employment and Support Allowance (ESA) with Child Tax Credit |
| From May 2025 | Tax credit recipients over State Pension age |
Those impacted will receive Migration Notices prompting them to apply for Universal Credit. Failure to respond within the given window may result in benefit stoppage.
What to Do If You’re Affected
If you’re currently receiving one of the four phased-out benefits, you must:
- Check your mail for a DWP Migration Notice.
- Apply for Universal Credit within the specified deadline.
- Update your details via your online account or contact DWP support.
- Seek help from a local Jobcentre or benefits advisor if needed.
DWP assures that no eligible claimant will lose support if they complete the transition on time.
The DWP’s confirmation of four benefit cuts marks a pivotal change in the UK’s welfare framework. As the government moves toward universal coverage under Universal Credit, it’s essential for those on Working Tax Credit, Child Tax Credit, JSA, or Income Support to prepare for the shift.
With over 500,000 households impacted, timely action is crucial to avoid interruptions. While the system aims to be simpler and more efficient, the transition process demands attention and proactive engagement from all claimants.
Be sure to watch out for Migration Notices, understand your new entitlements, and complete your Universal Credit application on time to ensure continued financial support.
FAQs
Which benefits are being cancelled by the DWP in 2025?
The DWP will cancel Working Tax Credit, Child Tax Credit, Jobseeker’s Allowance, and Income Support. These will be replaced by Universal Credit.
Will my payments stop if I don’t apply for Universal Credit?
Yes. If you fail to respond to your Migration Notice and do not apply for Universal Credit within the deadline, your benefits may be stopped.
Do I need to apply for Universal Credit right now?
Only apply when you receive a Migration Notice. This ensures you get any transitional protection and support from DWP during the process.