Final Stages in the Abolition of Legacy Benefits

1. Key Change: Housing Benefit Ends on Moving to General Needs Housing

Effective from: 14 November 2024

What changes?

  • Housing Benefit (HB) automatically ends when a claimant moves from temporary or specified accommodation into general needs accommodation, unless they are entitled to:
    • Universal Credit (UC),
    • income‑related ESA, or
    • income‑based JSA.

What to watch for

  • Before this date, HB could continue if the move was within the same local authority. This is no longer permitted.
  • Claimants who have claimed UC in general needs housing cannot keep HB.
  • Those still on income‑related ESA/JSA will lose HB through managed migration.

Important:

✔ Claimants can still make a new HB claim if moving into temporary or specified accommodation.

2. Conversion of Contributory ESA to New‑Style ESA

Effective from: 1 December 2025

Automatic conversion applies to:

  • Claimants receiving old‑style contributory ESA only (no income‑related component).

Effects of conversion

  • No new income‑related amounts can be added after 1 December 2025.
  • Claimants must agree to a claimant commitment.
  • All overpayments become recoverable (old ESA rules had some protections).
  • New sanctions regime applies, matching current new‑style ESA rules.

Important exception

Old‑style ESA can still be revised to add retrospective income‑related amounts for periods before 1 December 2025.
➡ Staff should explore this in cases involving past changes of circumstances or incorrect assessments.

Mixed awards

Where claimants receive both contributory and income‑related ESA:

  • The contributory element becomes new‑style ESA when the income‑related entitlement ends, or upon migration to UC.

3. Abolition of Income Support and Income‑Based JSA

Effective from: 1 April 2026

What happens?

  • These two legacy benefits are abolished in law, not just ended via managed migration.
  • Any remaining awards will end automatically on 1 April 2026.

Run‑on payments

  • Standard two‑week run‑ons can still continue past 1 April where applicable.

4. What is not ending (yet)

No abolition date has been set for:

  • income‑related ESA, or
  • Housing Benefit (general system)

Most cases will migrate to UC, but a small number may remain beyond April 2026 depending on DWP processing.

5. Actions for Staff

a. Identify at-risk claimants early

Particularly:

  • People in temporary/supported accommodation preparing to move.
  • ESA claimants with mixed (contributory + income‑related) awards.
  • Long‑term IS and income‑based JSA claimants still awaiting migration.

b. Provide early UC transition support

Ensure claimants:

  • Understand the impact on rent/HB,
  • Avoid gaps in entitlement,
  • Know when transitional protection may apply.

c. Review ESA cases for possible retrospective entitlement

Retrospective income‑related additions may still improve pre‑December 2025 awards.

d. Be alert to overpayments

All overpayments in new‑style ESA are fully recoverable.

6. Further Guidance

  • ADM Memo 12/25 – DWP official guidance on these measures
  • HB Circular A13/2025 – guidance for local authorities
  • Commencement Order: legislation.gov.uk/uksi/2025/1148/made