Thousands of households have been warned to “take action now” as their payments will soon come to an end. The final ‘Migration Notice’ letters have been issued to those still receiving Working Tax Credit and Child Tax Credit.
Households on either or both of those payments have been given three months to put in a claim for Universal Credit. If they fail to do so by the deadline, their existing payments will be terminated.
Officials say it’s crucial to act now because there are special rules in place when invited to claim Universal Credit that mean you are entitled to the benefit even if you have money, savings and investments of more than £16,000. It’s normally not permitted to claim Universal Credit in these circumstances as you are exceeding the capital limit.
This exception is in place for 12 months. But if you apply for Universal Credit after the migration deadline, this exemption no longer applies and your claim will be rejected if your savings are above permitted levels.
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Similarly, those in Northern Ireland are also being told to claim Universal Credit before the tax credits system closes in April 2025. The Department for Communities’ timetable for managed migration in Northern Ireland is closely aligned with the DWP’s plans in Great Britain, and it has also sent out its final letters to tax credits claimants.
Communities Minister Gordon Lyons said: “It is important that tax credits recipients take action now that all migration notice letters have been issued. If an individual chooses not to move to UC then their financial support will stop when Tax Credits come to an end in April 2025.
“Universal Credit is a payment for people on a low income or out of work. I want to ensure that people receive the financial support they are entitled to. My Department can assist with that through its dedicated telephony team and face-to-face support at local Jobs and Benefits offices as well as online information at nidirect. People can also seek independent welfare advice on the move to UC.”
The latest DWP statistics show that around 875,000 people have successfully moved across to Universal Credit, 318,000 had their benefits terminated when they ignored instructions to make the changeover, and 164,000 claims are still in progress. The majority of those whose claim was closed down when they did not swap over to Universal Credit were receiving both Working Tax Credit and Child Tax Credit (almost 220,000 claimants), while 64,000 were on Working Tax Credit only and another 23,000 solely in receipt of Child Tax Credit.
Around 6,000 people whose legacy benefits were stopped were on both types of tax credits plus Housing Benefit. Just over 1,000 were getting a combination of Child Tax Credit, Housing Benefit and Income Support.
The Universal Credit Migration Notice Helpline is available on 0800 169 0328, between 8am and 6pm, Monday to Friday. Support is also available via the Citizen Advice Help to Claim service, with advisers available 8am to 6pm, Monday to Friday on 0800 144 8444 in England, 0800 023 2581 in Scotland and 08000 241 220 in Wales.
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