The Department for Work and Pensions is axing six benefits with the first to end confirmed. The DWP is axing six legacy benefits with claimants told to move onto Universal Credit instead under the managed migration system.
Tax Credits, both Child and Working, which are issued by the HMRC, Housing Benefit, and Jobseeker’s Allowance are among the benefits being axed, alongside Income Support, and Income-Related Employment and Support Allowance.
The Low Incomes Tax Reform Group has warned: “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.”
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The DWP says: “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.” Citizens Advice says: “You should claim Universal Credit by the deadline on the letter.
“Your old benefits will stop after the deadline. If you claim Universal Credit before the deadline, the DWP might pay you extra to stop you being worse off. This is called ‘transitional protection’. This means that if you’d get less on Universal Credit than your old benefits, you’ll get an extra amount to make up the difference.
“The DWP will reduce the extra amount over time – so you’ll eventually just get what you normally would on Universal Credit.” Minister for Social Security and Disability, Sir Stephen Timms MP, spoke about the migration at the end of last year, saying: “This funding boost will support many people as they make the move from old benefits to Universal Credit – ensuring customers feel confident and informed throughout the application process.
“I want to encourage anyone receiving a migration notice over the coming months to act without delay to secure quick access to benefit entitlement. The biggest reforms to employment support for a generation will also ensure more people get the help they need to get into work and on at work, by overhauling jobcentres, tackling inactivity with local work, health and skills plans, and delivering a Youth Guarantee.”