Eight-week warning issued to everyone who receives tax credits as DWP says 'last time'

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-Credit: (Image: natalia gdovskaia)

The renewal date for people who receive tax credits is fast approaching. Claimants will be receiving renewal packs over the coming weeks if they haven't had them already.

The packs will explain their situation and whether they need to do anything before the July 31 deadline. The DWP says it will be the last time tax credits are renewed before they are scrapped.

Both Working Tax Credit and Child Tax Credit are being phased out to be replaced by Universal Credit. Around 730,000 people are claiming either one or both of Working Tax Credit or Child Tax Credit.

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The DWP says: "If you’re claiming tax credits, you’ll be sent a renewal pack. It’ll say if you need to do anything to renew your tax credits.

"If your renewal pack has a black line and says ‘check now’: You’ll need to check your details. If they’re correct, you do not need to do anything. Your tax credits will be automatically renewed.

"Your renewal pack will say how much you’ll be paid this year - this is your ‘award notice’. You might need to show your award notice to get certain benefits.

"If your renewal pack has a red line and says ‘reply now’: You’ll need to renew your tax credits by the date shown on your renewal pack. For most people, this is July 31, 2024.

"You’ll get estimated (‘provisional’) payments after April 6 until you renew. HMRC may pay you a different amount based on new information from your employer or pension provider."

Tax credits are one of the six legacy benefits being phased out over the next year or so. People will need to apply for Universal Credit when they receive Migration Notices through the post but don't need to do anything before then.