The DWP has set a deadline for stopping tax credits (Image: Getty)
UK households claiming tax credits face an urgent deadline from the () as the benefits are due to be axed.
The is replacing six ‘legacy benefits’ with from April, including and Working Tax Credit. These benefits will be permanently discontinued from April so benefits claimants need to have migrated to Universal Credit before the deadline or risk having their payments stopped.
The switch won’t be made automatically so if claimants receive a ‘Migration Notice’ letter from the asking them to claim Universal Credit, then households are urged not to ignore this.
Tax credits are ending on April 5, 2025, so most claimants should have already received a migration notice letter from the to claim Universal Credit. The letter will give you a deadline to claim it, which is usually three months after the date the notice was sent.
Citizen’s Advice explains: “If you get tax credits, your deadline to claim Universal Credit will be no later than 6 April 2025, even if that’s less than three months from the date on your notice. This is because tax credits are ending on 5 April 2025.
“If your letter doesn’t have a deadline, you don’t have to claim Universal Credit unless you want to – even if the letter says you’ll have to claim Universal Credit in future. You won’t be able to go back to your old benefits after you claim.
“You should claim Universal Credit by the deadline on the letter. Your old benefits will stop after the deadline. If you claim Universal Credit before the deadline, the might pay you extra to stop you being worse off.”
The says if you’re getting tax credits, you do not need to do anything unless you get a ‘Migration Notice’ telling you that you must claim Universal Credit, or your circumstances change. You’ll stop getting tax credits once you make a Universal Credit claim – even if your claim isn’t approved.
The government says: “After you’ve applied for Universal Credit, you’ll get a letter from called your ‘award review’. This will tell you when your tax credits claim ended. After your tax credits stop, you cannot claim tax credits again.
“If your application for Universal Credit is approved, it will take around five weeks to get your first Universal Credit payment. If you need help to pay your bills or cover other costs while you wait, you can apply to get an advance.”
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If the migration deadline to claim Universal Credit hasn’t passed yet, then you can ask the to extend it.
If the deadline has passed, you can get ‘transitional protection’ if you claim Universal Credit up to a month after the deadline. After this point, you can still claim Universal Credit but you won’t get the transitional protection.
Citizen Advice adds: “Your old benefits might stop before your Universal Credit starts. When they stop depends on which benefits you get, and when you claim Universal Credit.
“If you claim before the deadline from the , tax credits stop the day before you claim Universal Credit. If you claim Universal Credit after the deadline from the , tax credits stop the day before the deadline from the .”