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

The Department for Work and Pensions (DWP) has provided an update on its plans to abolish the Tax Credit benefit. The benefits department is currently transitioning those claiming legacy benefits onto Universal Credit, including those claiming Tax Credits, reports the Mirror.

At present, there are two types of Tax Credits available: Working Tax Credit and Child Tax Credit, with approximately 730,000 people claiming one or both of these benefits.

In documents outlining the transition to Universal Credit published by the department last month, it was revealed that the DWP will remove the exception that allows individuals to renew their Tax Credit claims and for claimants of one Tax Credit to claim the other.

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This regulation, which comes into effect next year, will result in no Tax Credit claims whatsoever from April 6, 2025. The documents stated: "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".

It's essential for those still receiving Tax Credits to remember that they have to renew their claims annually. The approaching July deadline marks the last opportunity beneficiaries will have to renew their tax credit claims.

Following this renewal cycle, new Tax Credit claims will no longer be accepted.

The DWP has been gradually phasing these conventional benefits out over the past several years, commencing their operations again last year after an unintentional hiatus due to the COVID-19 pandemic. When this managed migration restarted, approximately 2.6 million individuals across the UK were still availing old-style legacy benefits.

Among the benefits being discontinued, you will find: 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.

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Upon receipt, you'll have three months to submit a claim for Universal Credit. Failure to do so will result in cessation of your benefit payments.

Claims can be made online or via phone by calling 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 waiting period until your first Universal Credit payment. You'll continue to receive this going forward, unless your circumstances change.