From 30 April people who are able to get back into the workplace will get contribution-based Employment and Support Allowance (ESA (C)) for a maximum of 12 months.
The change will affect people in the Work Related Activity Group.
From 30 April if someone has received ESA (C) for more than 365 days their benefit will stop.
The Department of Work and Pensions said it has contacted all claimants who will be affected by this ahead of the implementation.
Claimants who have no access to money or support will be able to claim Income Related ESA.
People who already been assessed for Income Related ESA will automatically have their benefit adjusted and for those who have not been assessed for Income Related ESA will be asked if they want to make a claim.
People in the Support Group and those receiving income related ESA are unaffected by this measure.
A Department for work and Pensions spokesperson said: "The Welfare Reform Bill set out that ESA for people who could work was never intended to be a long term benefit.
"A time-limit of one year recognised that some people need extra help to enter the workplace and for those with no other financial support in the household there will be Income Related ESA which can be claimed after the one year limit."
