A significant DWP benefit is set to be abolished, affecting all current claimants. Tax credits are scheduled to cease in April amid sweeping reforms to the welfare system. The Government has issued a stark warning that there will be “no more payments” from that point forward.
Individuals receiving tax credits must transition to new benefits and are required to apply on their own, as the shift will not happen automatically. Claimants will need to switch to either Universal Credit or Pension Credit, based on their situation. Throughout 2024, many have already been moved from various tax credit schemes after being approached as part of the extensive process to transfer households to the new system.
Those who are still on tax credits and have received a migration notice by post must act swiftly to apply for Universal Credit or Pension Credit. They are given a three-month window to apply following the date the letter was dispatched, or they risk forfeiting their benefits.
The Government clarified: “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. If you are claiming tax credits and are state pension age or over, the DWP or the Department for Communities will write to you to ask you to apply for Universal Credit or Pension Credit, depending on your circumstances,” reports Birmingham Live.
“A very small number of customers will not be eligible for Universal Credit or Pension Credit. 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.”
The cessation of tax credits forms part of a significant revamp of the welfare system, which involves several benefits being discontinued and incorporated into the single benefit Universal Credit.