HomeMoneyMillions face benefit loss as welfare payment overhaul approaches

Millions face benefit loss as welfare payment overhaul approaches

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A major overhaul of Britain’s social security system has moved more than 1.9 million people onto Universal Credit as the government wraps up a lengthy era of legacy benefit schemes.

The Department for Work and Pensions has confirmed these closures mark a major milestone in its nationwide drive to reroute claimants toward Universal Credit – though many vulnerable applicants continue racing against time.

Two long-running benefit programmes have now been wound down, with former recipients redirected to Universal Credit. Ministers portray the changes as an attempt to bring the system into line with today’s job market.

Nevertheless, the switchover remains unfinished for certain categories.

A final deadline extension has been granted to several at-risk groups – including those on:

Income-linked Employment and Support Allowance

Housing Benefit (in certain cases)

These claimants now have until the end of summer 2026 to finish their move.

Work and Pensions minister Stephen Timms said the campaign had achieved the major task of transferring over 1.9 million people from older benefits to the updated Universal Credit framework.

He added that disadvantaged customers had been a key focus of the programme and the deadline extension would guarantee they maintained their payments throughout this period.

Universal Credit now functions as Britain’s main welfare provision – combining various former payments into a single monthly payment.

Official figures show over 65,000 people have already received extra help through newly created Pathways to Work advisers.

What claimants must do: some still need to act

The department is warning that certain individuals must make claims or risk losing their benefits.

Additional support on offer covers:

A dedicated phone service for the Universal Credit move

Home visits for those difficult to contact

Tailored assistance for vulnerable households

Deadline extensions can still be granted – provided requests arrive before the previous cutoff date.

The department says the changes create a framework that encourages advancement rather than creating barriers – yet for many, the basic message is clear:

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