Some pensioners have been notified by the Department for Work and Pensions (DWP) that their payments will cease from April 5. The DWP says that while some people can transition to a new payment system, others may not be eligible after the changes take effect.
This development affects pensioners who receive tax credits in addition to their state pension. With the abolition of the tax credits in April, pensioners have the option to switch to either Universal Credit or Pension Credit.
Although most pensioners on tax credits have already moved to the new system, those who haven’t are facing a countdown with only a few weeks of payments left. Pensioners can apply for extra benefits; however, this shift follows the loss many experienced with Winter Fuel Payments becoming means-tested last year.
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Pensioners living in poverty should be eligible for Pension Credit, which not only supplements pension payments but also provides access to approximately £10,000 in additional benefits, including bill reductions and a free TV licence. A DWP letter states: “Universal Credit is replacing tax credits. If you do not claim by the deadline date in that letter your existing tax credits payments will stop, even if you have just renewed your tax credits claim.”
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“If you are claiming tax credits and are state pension age or over, the DWP or the Department for Communities (Northern Ireland) will write to you to ask you to apply for Universal Credit or Pension Credit, depending on your circumstances. A very small number of customers will not be eligible for Universal Credit or Pension Credit”, reports Plymouth Live.
Watch out for a letter explaining the change
“These customers will be able to remain on and receive tax credits until April 5, 2025, unless a change in their circumstances ends tax credits sooner. After this date, tax credits will end, and no further tax credits payments will be made.”