In June 2025, the UK Department for Work and Pensions (DWP) is moving forward with significant changes to the benefits system. A total of four existing benefits are being phased out or merged, triggering widespread concern among low-income households. These DWP benefit cuts aim to streamline support payments but have raised serious questions about their long-term impact on vulnerable groups.
The move comes as part of a broader welfare overhaul that began earlier in the decade, with Universal Credit continuing to be positioned as the central support mechanism for claimants. According to government reports, these changes are being implemented to reduce administrative costs and “modernize” welfare delivery. However, critics argue that many will face delays, shortfalls, or even complete loss of support during the transition.
Which 4 Benefits Are Being Cut in 2025?
The following four benefits are scheduled to be cut or fully merged into Universal Credit by the end of June 2025:
| Benefit Name | Status in June 2025 | Replaced By |
|---|---|---|
| Income-based JSA | Fully phased out | Universal Credit |
| Income-related ESA | Closed to new claims | Universal Credit |
| Housing Benefit (for most cases) | Partially phased out | Universal Credit |
| Child Tax Credit | Fully phased out | Universal Credit |
These cuts primarily affect working-age individuals and families who haven’t yet migrated to Universal Credit. Pensioners and those in temporary or supported housing will still receive some exceptions, but they are increasingly rare.
Why These Benefits Are Being Removed
The DWP benefit cuts update highlights a shift in focus toward a consolidated welfare structure. Universal Credit is designed to unify six separate benefits into one monthly payment. The government claims this system simplifies the application process, reduces fraud, and encourages people to move into employment.
Yet, the rollout has been plagued by delays and controversy. Many households report difficulties adjusting to monthly payments, while critics argue that sanctions and rigid eligibility checks lead to financial instability.
According to a DWP spokesperson in June 2025, “We are making the system fairer, clearer, and more efficient. Support is still available, but in a more streamlined form.”
Who Will Be Impacted the Most?
The impact of these DWP benefit cuts will be most significant for claimants who rely on legacy benefits and haven’t transitioned to Universal Credit yet. This includes:
- Single parents with dependent children
- Long-term unemployed individuals
- People with chronic health conditions currently on ESA
- Low-income renters receiving Housing Benefit
Claimants must act promptly to ensure their payments are not interrupted. The DWP is issuing migration notices, giving people three months to apply for Universal Credit before their existing payments are stopped.
What Should Claimants Do Now?
If you receive one of the affected benefits, it is crucial to:
- Check your eligibility for Universal Credit immediately
- Respond to any DWP migration notice within the 3-month window
- Use local job centres or welfare advice services for support in transitioning
- Prepare for a potential gap in payments due to the five-week wait for the first Universal Credit instalment
Failure to act in time could result in a complete loss of financial support. While advance payments are available during the transition, they must be repaid, which can strain household budgets in the long term.
Conclusion
The June 2025 DWP benefit cuts are not just administrative changes—they have real-world consequences for millions of UK residents. While Universal Credit aims to simplify welfare delivery, the transition process poses serious risks for vulnerable claimants. Being informed and proactive is essential to avoid disruption in income and access the support you’re entitled to.
FAQ
What is the latest DWP benefit cuts update as of June 2025?
The latest update confirms that four benefits—Income-based JSA, Income-related ESA, Housing Benefit (in most cases), and Child Tax Credit—are being cut or merged into Universal Credit by the end of June 2025.
Will Universal Credit replace all the benefits being cut?
Yes, all four of the listed benefits will be replaced by Universal Credit, though there are exceptions for specific cases like pensioners or those in supported housing.
What happens if I don’t apply for Universal Credit after receiving a migration notice?
If you don’t apply within the specified timeframe (usually 3 months), your existing benefits will stop, and you could be left without financial support until you do.
Can I get help with the Universal Credit transition?
Yes, you can contact your local job centre or a welfare support service. Some councils and charities offer free help with filling out the application.
Will my payments change under Universal Credit?
Your overall payment may increase or decrease depending on your circumstances, as Universal Credit uses a different assessment model.
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