DWP sets final date for Tax Credits, impacting 730,000 claimants

The Department for Work and Pensions (DWP) has announced its intention to phase out the Tax Credit benefit as part of the transition to Universal Credit.

Those currently receiving legacy benefits, including Tax Credits, are being shifted to Universal Credit. Tax Credits come in two forms: Working Tax Credit and Child Tax Credit, with approximately 730,000 individuals claiming one or both.

According to recent documents released by the DWP, an upcoming change will eliminate the option for individuals to renew their Tax Credit claims or switch between the two types of Tax Credits. This new rule, effective from next year, is set to completely end all Tax Credit claims by April 6, 2025.

The official statement clarified: ". Regulation 8 is designed to prevent any renewal of existing Tax Credit claims or allow a person who is claiming one tax credit (for example Working Tax Credit), to claim the other Tax Credit (Child Tax Credit), and vice versa. This will also ensure there are no Tax Credits claims from April 2025."

"Regulation 6A of the Universal Credit (Transitional Provisions) Regulations 2014 states that a person cannot make a claim to a Tax Credit. However, exceptions are provided in Regulation 6A(6) for existing Tax Credit claimants to claim the other Tax Credit and (7) for existing Tax Credit claimants to apply to renew their awards. These exceptions are now removed so there can be no more claims to a Tax Credit. This regulation does not come into force until 06/04/2025", reports the Mirror.

If you're currently receiving Tax Credits, it's crucial to note that you must renew your claim annually. The upcoming renewal in July will be the last opportunity to do so, as after this date, renewals for this benefit will no longer be possible.

Presently, new claims for Tax Credits cannot be made.

The DWP has been gradually phasing out legacy benefits over recent years, resuming the process last year after a temporary halt due to the Coronavirus pandemic. When the managed migration recommenced, approximately 2.6 million individuals in the UK were still on the old-style legacy benefits.

The list of six benefits set to be discontinued includes Working Tax Credit, Child Tax Credit, Income-based Jobseeker's Allowance (JSA), Income Support, Income-related Employment and Support Allowance (ESA), and Housing Benefit.

The DWP is conducting its move to Universal Credit in stages, and currently, it is focusing on those claiming Tax Credits and Housing Benefit. When it is your turn you will receive a migration notice in the post.

and once you receive one, you will have three months to put in a claim for Universal Credit. If you don't, then your benefit payments will stop.

You can put in your claim online, or over the phone by calling the Universal Credit Migration Notice helpline on 0800 169 0328, or you can also ask your local Job Centre. Once you have made your claim, you will have to wait five weeks until your first Universal Credit payment and you will continue to receive it going forward - unless your circumstances change.