Some benefit payments are ending (Image: Getty)
The Department for Work and Pensions (DWP) has issued an urgent warning that some claimants will get “no more payments” as a benefit is to be scrapped.
In an overhaul of the welfare system, all those currently receiving tax credits must transition onto new benefits; however, each person has to initiate this change themselves, as it will not occur automatically.
Recipients are expected to make a switch to either Universal Credit or Pension Credit, depending on their personal situation. The switchover has already been underway, with many individuals having transferred from various forms of tax credits throughout 2024 after being asked to do so by the .
This process is known as managed migration. People are being sent out letters informing them of their benefits ending and instructing them to apply for the new benefit.
You have three months from the date of the letter to get in your application. All tax credit claims will end by April 5, 2025, with the end of the tax year.
The explains on the Government website: “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 age or over, the or the Department for Communities will write to you to ask you to apply for Universal Credit or Pension Credit, depending on your circumstances.”
The department further advises that there is a small number of tax credit claimants who will not be able to claim the new benefits.
The advice states: ” 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 change is part of a wider programme to move people from six older benefits onto Universal Credit.
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These are the six legacy benefits being replaced by Universal Credit:
- Income Support
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Child Tax Credit
- Working Tax Credit
- Housing Benefit.