DWP 2025-26: 4 Benefits Cancelled — A major change is going to happen in the UK welfare system in the financial year 2025-26. The Department for Work and Pensions (DWP) has announced that by the end of this year, four old and big benefits of the country will be completely discontinued.
This change is part of the government’s big plan, in which the beneficiaries of all the old benefits are to be shifted to Universal Credit (UC). The aim of the DWP is to provide assistance to the people through a single payment by combining all the benefits under an easy, single system.
Now the question arises – which 4 benefits are being discontinued? Who will feel the impact of this change? And how will the transition process be? Let’s understand in detail.
Which 4 Benefits Are Being Discontinued?
The 4 benefits that DWP has announced to stop by the end of 2025 are:
- Working Tax Credit
- Child Tax Credit
- Jobseeker’s Allowance (JSA) – income-based
- Income Support
That is, if you are currently dependent on any of these benefits, then you will not get this benefit directly in future. You will have to migrate under Universal Credit.
Why is Universal Credit Being Introduced?
Universal Credit (UC) is the new scheme of the government, in which all the old benefits have been combined into a single system.
What Used to Happen Till Now?
- Some used to get Tax Credit separately
- Some used to get Income Support
- Some used to get Housing Benefit
- Some used to get JSA or ESA
Meaning different claims for everything, different forms and a lot of paperwork.
All this will be combined in Universal Credit and given in a single monthly payment. The advantage of this will be that the system will become much simpler and the administrative expenditure will also be reduced.
The government’s target is that by the end of the financial year 2025, all old beneficiaries (about 5 lakh households) should transition to UC.
How Will the Transition Process Be?
The government has clearly stated that the transition will be done very thoughtfully and in phases. This means that everyone will not be migrated at once.
Every person will first get a “Migration Notice” in which it will be written that now you have to apply for Universal Credit.
If you do not apply within the stipulated time limit, then the payment of your old benefits may stop. Therefore, it is important for all beneficiaries to apply immediately as soon as they receive the notice.
What Changes Are Being Made on Tax Credit?
For those who are currently getting Tax Credit, this year will be the last when there will be some change in their Tax Credit.
Changes to Working Tax Credit
- Basic Element: increased from £2280 to £2435 per year
- Couple and Lone Parent Element: increased from £2340 to £2500 per year
- Disabled Worker Element: increased from £3685 to £3935 per year
- Severe Disability Element: increased from £1595 to £1705 per year
- Childcare Costs: £175 (1 child), £300 (two or more children)
Changes to Child Tax Credit
- Family Element: £545 per year (remains the same)
- Child Element: increased from £3235 to £3455 per year
- Disability Element (Disabled Child Rate): increased from £3905 to £4170 per year
- Disability Element (Severely Disabled Child Rate): increased from £1575 to £1680 per year
This is the last time Tax Credits have been revised. From now on, only Universal Credit will provide support.
What Will Be the Full Transition Timeline?
The government has given a detailed timeline so that people can prepare in time.
April 2025
- Income Support recipients will receive a notice
- Tax Credits + Housing Benefit recipients will receive a notice
June 2025
- Only Housing Benefit recipients will receive a notice
- Transition for JSA recipients will begin
July 2025
- Employment and Support Allowance (ESA) + Child Tax Credit beneficiaries will receive a notice
From June 2025
- Tax Credit recipients who are close to State Pension Age will be guided to either Universal Credit or Pension Credit
The Benefits and Support of Universal Credit
The Government is aware that people who have relied on the old benefit for a long time may feel overwhelmed by this change.
Therefore, the DWP says that it will:
- Provide detailed guidance at every step
- Provide personal assistance if needed
- Support online, by phone and through the local Jobcentre
The government claims that the process for those who have been migrated so far has been very smooth.
Employment Minister Jo Churchill has also said that if any problem arises, it will be worked on quickly.
Read more: Latest DWP 2026 PIP Rule Changes Explained
What Can Be the Effects of This Change?
This change is a major change in the country’s welfare policy.
While on the one hand it will modernize and streamline the system, on the other hand, families dependent on old benefits will have to proceed very carefully and wisely.
If you do not apply for Universal Credit on time or miss the deadline, your help may stop.
So:
- Pay attention to the notice
- Apply on time
- Gather information about Universal Credit
Will There Be Any Changes in Universal Credit?
There are some differences in Universal Credit as compared to the old Tax Credit:
- Payment will be monthly
- Rent support will be added separately
- Calculation will be done according to work allowance and taper rate
Conclusion
The aim of this whole process is to make the welfare system easy and modern.
For Working Families
Now there will be no need to fill different forms. Everything will be available in one place in Universal Credit.
For the Elderly and Disabled
Pension will be guided in credit or UC so that their support should continue.
For Those on Low Income
Work allowance may provide some benefit.
Overall, the closure of Working Tax Credit, Child Tax Credit, Jobseeker’s Allowance and Income Support is a very important phase in the transformation of the UK’s welfare system.
If you are a beneficiary of any of these benefits, this year is very important for you. Transition to Universal Credit on time and ensure your support.
The government is providing support and guidance, but only by being proactive will you be able to adopt this change properly.
