Five benefits are being phased out this year
15:57, 15 Jan 2025Updated 15:57, 15 Jan 2025
The DWP has issued a warning to people receiving tax credits and other benefits(Image: PA)
The DWP has issued a warning to people receiving tax credits. Five benefits are being phased out and replaced by Universal Credit in the coming months.
The Department for Work and Pensions are sending letters to thousands of benefit claimants. It reminds people that in April, Tax Credits will be phased out and changes will be coming to other benefits too.
This comes as part of a “Managed Migration” plan which is set to replace six “legacy benefits” with Universal Credit. The DWP say the following benefits are ending and are being replaced by Universal Credit:
- Tax credits: Working Tax Credit and Child Tax Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Housing Benefit, unless you’re in supported or temporary accommodation
594,000 families claiming tax credits in April 2024 will see their benefits halted from April 2025 if no action is taken. Those who receive these letters need to apply for Universal Credit instead. Affected individuals have three months from the date on their migration notice to apply for Universal Credit to continue receiving benefits.
The DWP emphasises that people do not need to act until they receive their migration notice letter from the Department from Work and Pensions. The Low Incomes Tax Reform Group has cautioned: “Universal credit is gradually replacing working tax credit and child tax credit as well as some other means-tested benefits.
“If you have been claiming tax credits and start to claim universal credit in the same tax year, your tax credit award will stop. Your tax credits will also stop if you have been sent a migration notice asking you to claim universal credit by a deadline date and you do not do so.”
Universal Credit claimants who are currently on old-style benefits are being sent letters, which act as “migration notices”. Recipients will be told they have a three-month period to lodge a Universal Credit claim, missing the deadline may lead to existing payments being halted.
April will see the first “legacy benefit” stopped as Tax Credits claimants will need to make a claim before the changes are in place. The DWP aims to ensure all Tax Credit recipients receive a migration notice.
Social security and disability minister Sir Stephen Timms urged people to make the changes sooner rather than later. He said: “I encourage everyone who has received a migration notice to act as quickly as possible and move onto Universal Credit. We know how quickly time can pass when you’re busy.
He continued: “With just three months to go until Tax Credits close on the 5th of April – now is the time to respond to your Universal Credit migration notice to continue receiving benefits.”
If you cannot claim Universal Credit by the deadline date, you should contact the Universal Credit Migration Notice Helpline as soon as possible.” They add that most people will be entitled to the same amount they received from their previous benefit.