A significant DWP benefit shake-up is on the horizon, with tax credits scheduled to cease this April amidst sweeping welfare system reforms. The Government has starkly stated there will be “no more payments” from that time forward.
All individuals currently benefiting from tax credits are required to transition to new forms of support and need to proactively apply for either Universal Credit or Pension Credit based on their personal situation.
Numerous recipients have likely already migrated from various tax credit schemes following contact throughout 2024 as part of the extensive task of transferring households to alternative benefits. To receive invaluable advice on saving money and ingenious financial tips, make sure to subscribe to our newsletter.
For those who are still receiving tax credits and have obtained a migration notice via post, it’s imperative to promptly register for Universal Credit or Pension Credit.
All individuals currently benefiting from tax credits are required to transition to new forms of support (Image: Nick Wilkinson/Birmingham Live)
There is a three-month window to file an application from the date the letter was dispatched, or risk termination of their existing support.
The Government has elucidated: “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.”
“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,” reports .
The cessation of tax credits is a component of a significant reform of the welfare system, which involves the discontinuation of various benefits and their consolidation into the single benefit Universal Credit.