Just looking at the photo on my phone it doesn't look terminal. As said by others, try to clean off as much of the "scabs" as you can.
I use Bilt Hamber Hydrate 80 as rust converter to at least slow the spread, it reacts with the rust and sets as a primer layer. Personally I only then paint parts if I can get them clean and dry, otherwise you can end up just trapping the problem and having the paint lift and water getting underneath. If painting the best stuff I've found is Johnstone quick dry zinc phosphate primer (Screwfix own brand stuff is nowhere near as good in my experience, not recommended for this application). Top off with Hammerite if desired, though the Johnstone primer is remarkably durable on its own.
I then use Bilt Hamber UC over the top. I have found UB tends to harden and gets moisture under it rather like paint, but UC is softer and while not as tough as UB it works better in real world situations. Just my experience.
I get stuff directly from the Bilt Hamber website, usually try to get several items to get the free p&p. No commercial connection, satisfied customer.