DWP shares exact date major benefit claimed by 730,000 Brits will be scrapped

Stressed wife and husband with many debts calculating family income.Main focus on the woman
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The Department for Work and Pensions (DWP) has issued an update regarding its strategy to phase out the Tax Credit benefit. As part of the transition to Universal Credit, the DWP is in the process of shifting claimants from legacy benefits, including those currently receiving Tax Credits. There are two main types of Tax Credits available: Working Tax Credit and Child Tax Credit, reports the Mirror.

At present, approximately 730,000 individuals are claiming either or both of these benefits. According to documents released last month by the department, outlining the shift towards Universal Credit, it was disclosed that the DWP intends to eliminate the provision that presently permits individuals to renew their Tax Credit claims or to claim the alternate Tax Credit if they are already receiving one.

This change, which is set to be implemented next year, will result in the complete cessation of Tax Credit claims from April 6, 2025. The document states: "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 Credit 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".

If you're currently on Tax Credits, remember you need to renew your claim annually. The upcoming renewal in July will be the last chance to do so, as after this point, you won't be able to renew your benefit claim anymore.

New claims for Tax Credits are already off the table. The Department for Work and Pensions (DWP) has been gradually phasing out legacy benefits over recent years, resuming the process last year after a temporary halt due to the Covid-19 pandemic. When managed migration kicked off again, approximately 2.6 million individuals in the UK were still receiving these traditional forms of support.

Six benefits are being phased out: 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 Department for Work and Pensions (DWP) is gradually implementing Universal Credit, currently focusing on those claiming Tax Credits and Housing Benefit. When it's your turn, you'll receive a migration notice in the post.

Upon receipt, you have three months to submit a claim for Universal Credit, failing which your benefit payments will cease.

Claims can be made online or via phone by ringing the Universal Credit Migration Notice helpline at 0800 169 0328. Alternatively, you can consult your local Job Centre.

After submitting your claim, there's a five-week wait until your first Universal Credit payment, which will continue unless your circumstances alter.