The Department for Work and Pensions has written to some pensioners to warn them their payments are going to stop from April. The DWP says some will be able to swap to a new payment system while others will not qualify after the change.
The news comes form pensioners who claim tax credits on top of their state pension. From April, these tax credits are being scrapped and pensioners can apply to move to Universal Credit or Pension Credit.
Most pensioners claiming tax credits have already switched to the new system, but for those who have not there are just a few more weeks of payments due. Pensioners can apply for additional benefit, but the move comes after many lost out on Winter Fuel Payments this year because that payment became means tested.
Pensioners living in poverty shoukd qualify for Pension Credit, which tops up pension payments and gives accfess to around £10,000 of other beneits such as a reduction in some bills and a free TV licence.
A DWP letter reads: “Universal Credit is replacing tax credits. If you do not claim by the deadline date in that letter your existing tax credits payments will stop, even if you have just renewed your tax credits claim.
“If you are claiming tax credits and are state pension age or over, the DWP or the Department for Communities (Northern Ireland) will write to you to ask you to apply for Universal Credit or Pension Credit, depending on your circumstances. A very small number of customers will not be eligible for Universal Credit or Pension Credit.
“These customers will be able to remain on and receive tax credits until April 5, 2025, unless a change in their circumstances ends tax credits sooner. After this date, tax credits will end, and no further tax credits payments will be made.”