DWP urgent warning to anyone receiving Tax Credits
People in the UK who receive tax credits are being issued an urgent warning. The Department for Work and Pensions ( DWP ) has said that no further payments will be made under an old system.
It comes as it brings about changes to benefits as part of a major overhaul. Anyone currently claiming tax credits - which includes Housing Benefit, Income Support, Jobseeker's Allowance and Income-Related Employment and Support Allowance - will not automatically be moved onto Universal Credit or Pension Credit.
Universal Credit and Pension Credit are replacing six axed benefits. Your payments will completely stop in April if you do not apply for the new benefit yourself.
READ MORE: Drivers face £120 fine for 'not understanding' common road sign
Don't miss the biggest and breaking stories by signing up to the BirminghamLive newsletter here.
People receiving tax credits should by have had a letter from the DWP by now, Mirror reports. It will include instructions on what you can apply for and how to do it.
According to official figures, 594,000 families claiming tax credits in April 2024 will see their benefits stopped from April 2025 if no action is taken. You do not have to do anything until you receive your migration letter from the DWP.
But as soon as you get a letter, you have three months from the date on it to take action. Gov.uk says: "To continue receiving financial support you must claim Universal Credit by the deadline date given in your letter.
"If you cannot claim Universal Credit by the deadline date, you should contact the Universal Credit Migration Notice Helpline as soon as possible. You may be able to get more time to make a claim if you have a good reason. You must request this before your deadline date."
Citizen’s Advice has a help page with information on who is entitled to claim Universal Credit and what to do if you are in receipt of a migration letter. It also has information on how you may get extra money as the changes take place.
It said: "Your old benefits will stop after the deadline. If you claim Universal Credit before the deadline, the DWP might pay you extra to stop you being worse off. This is called ‘transitional protection’.
"This means that if you’d get less on Universal Credit than your old benefits, you’ll get an extra amount to make up the difference. The DWP will reduce the extra amount over time - so you’ll eventually just get what you normally would on Universal Credit."
The transitional protection also means that some people may be able to get Universal Credit when they would not usually be entitled to it. This includes if you:
Are a full-time student who wouldn’t usually get Universal Credit, you can usually get it until the end of your course
Get tax credits and have over £16,000 in savings or investments, you can get Universal Credit for up to a year - this is a type of transitional protection called a ‘transitional capital disregard’
Have reached State Pension age and get a migration notice, you can claim Universal Credit
A small number of people will not be eligible for Universal Credit or Pension Credit. These people will be able to remain on and receive tax credits until April 5, 2025, unless a change in their circumstances ends tax credits sooner.
After this date, tax credits will end, and no further tax credits payments will be made.