DWP Confirms UK Benefits Ending Next Year: 7 Major Reforms You Must Know For 2026

The headline "DWP confirms UK benefits ending next year" is causing widespread concern, but the reality is more nuanced: a massive, multi-faceted overhaul of the UK's welfare system is set to culminate in 2026, not a complete cessation of support. As of December 2025, the Department for Work and Pensions (DWP) has confirmed a definitive timeline for the abolition of several "legacy benefits" and the introduction of significant reforms to Universal Credit (UC) and disability payments, which will affect millions of households across the UK. This comprehensive guide breaks down the seven most critical changes scheduled for the next year, detailing who will be impacted and the exact dates you need to know.

The Great Benefit Switch: Which Payments Are Actually Ending by April 2026?

The primary source of the "benefits ending" claim stems from the final phase of the Managed Migration to Universal Credit (UC). The DWP has confirmed that the vast majority of remaining claims for six key legacy benefits are scheduled to be fully phased out by the beginning of April 2026. This is not a cut in support, but a mandatory transfer to the modern Universal Credit system. Claimants who receive a Migration Notice must make a new claim for Universal Credit or risk losing their financial support. The six legacy benefits being abolished are:

• Working Tax Credit (WTC): Final payments are stopping as claimants are moved to Universal Credit.
• Child Tax Credit (CTC)
• Income Support (IS): Expected to be closed by 1 April 2026.
• Housing Benefit (HB)
• Income-based Jobseeker’s Allowance (JSA): Scheduled to be fully phased out by April 2026.
• Income-related Employment and Support Allowance (ESA)

The DWP is urging all remaining legacy benefit claimants to prepare for the transition now. Failure to act on a Migration Notice will result in the loss of all current benefit payments.

Key Universal Credit Reforms: Who Gains £725 and Who Faces Cuts in 2026

While the transition to UC continues, the system itself is undergoing major legislative changes set to take effect from April 2026. These reforms will dramatically alter the financial landscape for four million UK households.

1. The Two-Child Limit is Scrapped

The most significant gain for families is the confirmed removal of the Two-Child Limit on Universal Credit. This policy currently restricts the child element of UC to the first two children in a family, causing significant financial hardship for larger families. Scrapping this limit from April 2026 will provide a substantial financial uplift for many claimants.

2. Changes to the LCWRA Element

A controversial change involves the Limited Capability for Work and Work-Related Activity (LCWRA) element of Universal Credit. This element is currently worth approximately £416 per month (based on 2025/26 rates) and is paid to those unable to work due to illness or disability. From April 2026, new claimants of Universal Credit who receive the LCWRA element will see a reduction in their payment. They will no longer receive the full amount, but instead a reduced weekly payment of around £50. However, claimants whose UC health claim started before 6 April 2026 will be protected and will not be worse off due due to this reform.

3. Annual Benefit Uprating (The Inflation Increase)

The DWP has confirmed the annual uprating for all benefits for the 2026/27 financial year. Most benefits, including inflation-linked payments administered by HMRC, will increase by 3.8%, in line with the Consumer Price Index (CPI) rate of inflation. However, the Universal Credit standard allowance is set to receive a slightly lower uprating of 2.3% from April 2026.

The Future of Disability and Health-Related Benefits: PIP and State Pension

Beyond the Universal Credit transition, two other major announcements regarding disability support and the State Pension have been confirmed for the 2026 calendar.

4. PIP Reform: Restricting Access

The government's wide-ranging welfare reform plans include significant changes to the Personal Independence Payment (PIP) system. The DWP is set to restrict access to PIP from November 2026. This reform is projected to have a severe impact, with estimates suggesting that between 800,000 and 1.3 million disabled people could face an average cut of £4,500 a year. The changes are part of a broader move to reform health-related and disability benefits, with the stated goal of narrowing the gap between benefits for the unemployed and those who are working.

5. Disability and Health Benefit Uprating

In a positive development, the DWP has confirmed that all disability and health-related benefits, including PIP, Disability Living Allowance (DLA), and Attendance Allowance, will rise in April 2026 in line with the annual uprating rules. This increase is part of the general 3.8% uprating for most benefits.

6. State Pension Triple Lock Boost

The New State Pension and Basic State Pension are protected by the Triple Lock guarantee. The DWP has confirmed that under this mechanism, State Pension payments will be uprated by 4.8% from April 2026. New state pensioners are set to receive up to an extra £575 per year.

7. The Broader Welfare Reform Savings Target

The entire package of welfare reforms, which includes the changes to LCWRA and the proposed PIP restrictions, is projected to save the government £1.9 billion by the end of 2030. These changes are part of the "Pathways to Work: Reforming Benefits and Support to Get Britain Working" initiative.

Action Plan for Claimants: What to Do Before April 2026

The message from the DWP is clear: 2026 will be a year of transition and change. For claimants of the six legacy benefits (Income Support, Income-based JSA, WTC, CTC, HB, and Income-related ESA), the most urgent action is to prepare for the Managed Migration process. * Do not ignore a Migration Notice: If you receive a letter instructing you to move to Universal Credit, you must act on it by the specified deadline to ensure your payments continue. * Check for Transitional Protection: The DWP provides Transitional Protection to ensure that claimants moving from legacy benefits to UC are not financially worse off at the point of migration, provided the transfer is completed by the deadline. * Seek Independent Advice: Organisations like Citizens Advice and Turn2us can offer free, tailored guidance on the changes to Universal Credit, the removal of the two-child limit, and the impact of the LCWRA reforms. The DWP is committed to simplifying the benefits system, but the process is complex. Staying informed about the exact dates and rules for the benefit changes is the best way to navigate the welfare reform landscape of 2026.

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