The Department for Work and Pensions (DWP) has issued a stark warning that “no more payments” of Tax Credits will be made after April 6. The legacy benefit is set to end with the close of the current financial year on April 5, leaving those who have not yet submitted a claim for Universal Credit or Pension Credit without future payments.
Final Migration Notices were sent out in October, giving existing Tax Credits recipients three months to lodge a claim for Universal Credit before the termination of their old benefits. Individuals still on Tax Credits who haven’t applied for Universal Credit are being strongly advised to act now to avoid having their funds stopped in April as the switch won’t happen automatically.
Last year saw confirmation from the DWP that upwards of one million individuals are shifting from the old benefits system to Universal Credit. They’ve pointed out: “Tax credits end on April 5 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.”
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Legacy benefits including Tax Credits, Housing Benefit, Income Support, Jobseeker’s Allowance and Income-Related Employment and Support Allowance are being gradually eliminated in a move to simplify government support into a single system, reports the Daily Record.
Claimants will need to switch to either Universal Credit or Pension Credit, based on their situation
(Image: Getty)
In a statement made in October about the final phase of migrating people who receive Tax Credits, Sir Stephen Timms, Minister for Social Security and Disability, said: “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.”
Some who get a Migration Notice or Tax Credits Closure Notice could be in line for an extra payment to lessen the impact of their Tax Credit award ending, which during a shift to Universal Credit is called a transitional element.
For those deferring their State Pension or a non-State Pension upon receipt of their closure notice, they will not be considered as receiving this income during the initial 52 weeks of their Pension Credit award. The DWP clarified its position, stating: “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.”
More information can be found on the dedicated Migration Notice page on GOV.UK here.