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

The DWP shared an update on its plans to scrap Tax Credits
-Credit: (Image: PA)

The DWP has given the exact date on when it will scrap its current Tax Credit benefit for the 730,000 people who currently claim it. The department is in the process of moving all legacy benefits over to Universal Credit, and Working Tax Credit and Child Tax Credit will both be affected by the big switch.

Documents detailing the move published by the Government last month show that the DWP was removing the exception which allowed people to renew Tax Credit claims, and for claimants of one Tax Credit to claim the other. This regulation - which comes into force next year - will mean that there will be no Tax Credit claimants at all as of April 6, 2025.

The documents stipulate: "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."

The Mirror reports that those claiming Tax Credits need to renew their claim this year, and the next - and final renewal - comes in July. After this, you will no longer be able to renew your claim - and there is no option currently to make a new Tax Credit claim. The DWP has been phasing out legacy benefits for a number of years now, briefly pausing during the Coronavirus pandemic.

But at the time of restarting, around 2.6 million people were still claiming old-style benefits across the UK. There are six benefits which are set to be scrapped by the DWP, in the form of: 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 slowly moving to Universal Credit in stages ad is currently focusing on Tax Credits and Housing Benefit. You will receive a migration notice when it is time to make the move, and you must submit a claim within three months of receiving this if you want to don't want your benefits to stop.

You'll be able to enter a claim online or via the phone on the UC Migration Notice helpline on 0800 169 0328. You can also enquire at your local Job Centre. Once a claim is made, you will wait around five weeks for your first Universal Credit payment and will continue to receive it going forward unless circumstances change.