A crucial deadline is coming up from many benefits claimants, as the Department for Work and Pensions (DWP) announces that some will receive “no more payments” from a set date. A major shake-up of the welfare system is underway, with all individuals currently getting tax credits are required to shift to new benefits—a change that each individual has to carry out as it will not happen by default.
Claimants need to switch to either Universal Credit or Pension Credit, depending on their circumstances. This changeover, known as managed migration, has been going on for many months as people have moved from different tax credit in 2024 following directions from the DWP.
Officials are sending out letters notifying recipients about the termination of their existing benefits and giving guidance on how to apply for new ones so they can continue to get their payments. This migration notice letter provides a three-month window from the receipt date for the letter, for you to submit your application for the new benefit.
The deadline when all tax credit claims will end is April 5, 2025, at the end of the fiscal year. The Government website lays out clear instructions from the DWP: “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 will write to you to ask you to apply for Universal Credit or Pension Credit, depending on your circumstances.”
The department further advises that a small number of tax credit claimants will not be able to claim the new benefits. The guidance states: “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.”
This change is part of a broader programme to transition people from six older benefits onto Universal Credit. These are the six legacy benefits being replaced by Universal Credit:
- Income Support
- Child Tax Credit
- Working Tax Credit
- Income-related Employment and Support Allowance
- Income-based Jobseekers Allowance
- Housing Benefit.