The Department for Work and Pensions (DWP) has issued a warning that “no more payments” of Tax Credits will be made after April 6. With the legacy benefit drawing to a close on April 5, individuals who haven’t yet applied for Universal Credit or Pension Credit won’t receive any further payments.
The final Migration Notices were dispatched in October to inform existing Tax Credits recipients of the three-month timeframe they have to claim Universal Credit, prior to their current benefits ceasing. It’s now imperative for those still receiving Tax Credits but who haven’t transitioned to Universal Credit to act immediately or risk losing their benefits in April since the changeover doesn’t happen automatically.
Official advice detailed on GOV.UK clarifies: “Tax credits end on 5 April 2025. No more payments will be made after that. You’ll be sent a letter if you are eligible for Universal Credit or Pension Credit instead.”
Last year’s figures from the DWP showed that over one million individuals are moving from old-style benefits to Universal Credit as part of an effort to consolidate government financial assistance programmes into a single system.
The Department for Work and Pensions (DWP) has reassured that the ‘majority’ of individuals will not find themselves financially worse off when transitioning to Universal Credit. They are also urging anyone in need of assistance to get in touch for a seamless changeover ahead of their respective deadlines, reports the Daily Record.
Detailed guidance is available on the GOV.UK Migration Notice page. In October, Sir Stephen Timms, the DWP Minister for Social Security and Disability, commented on the final stage of moving those on Tax Credits: “Having three months to make a move may feel like a long time but life can often distract you elsewhere. For the best chance to secure your benefit entitlement don’t delay with responding to your migration notice.
“We are committed to ensuring a smooth transition and customers will have the full support of DWP staff to help manage this change.” For individuals receiving a Migration Notice or Tax Credits Closure Notice who might face reduced benefits due to the termination of their Tax Credit award, there’s a possibility of receiving a transitional additional amount to compensate for any losses. This is known as a transitional element when it pertains to Universal Credit.
Additionally, for those deferring their State Pension or a non-State Pension at the time they receive their closure notice, they will not be considered as having this income for up to the first 52 weeks of their Pension Credit award.
The Department for Work and Pensions (DWP) explained: “As unclaimed pension income is ignored for Tax Credit purposes, this exception to the normal rules on the treatment of such notional income applies to these claimants to allow time to adjust to the new rules.”