The Department for Work and Pensions (DWP) has sent out an urgent alert stating “no more payments” of Tax Credits will be made after April 6. In a crucial update, individuals still on the legacy benefit, which ends on April 5, have been told they must apply for Universal Credit or Pension Credit if they wish to continue receiving support—their current benefits will not transition automatically.
The final Migration Notices went out this past October, giving Tax Credits claimants a three-month period to make their claim for Universal Credit before their benefits stop. Those failing to make the switch are at risk of finding themselves without any benefits come April.
According to official guidance from GOV.UK: “Tax credits end on 5 April 2025. No more payments will be made after that. You’ll be sent a letter if you are eligible for Universal Credit or Pension Credit instead.”
Statistics from last year indicate that over one million people are in the process of migrating from older benefit schemes to Universal Credit, as part of the government’s efforts to streamline its financial aid into one consolidated system.
Moreover, the DWP reassures that the ‘majority’ of claimants should not be financially worse off post-transition to Universal Credit and advises those requiring help to contact them immediately to ensure a smooth handover by the designated deadlines, reports the Daily Record.
Guidance on the migration process is available on the GOV.UK Migration Notice page.
In October, Sir Stephen Timms, DWP Minister for Social Security and Disability, advised those being moved from Tax Credits: “Having three months to make a move may feel like a long time but life can often distract you elsewhere. For the best chance to secure your benefit entitlement don’t delay with responding to your migration notice.”
He added: “We are committed to ensuring a smooth transition and customers will have the full support of DWP staff to help manage this change.”
Those receiving a Migration Notice or Tax Credits Closure Notice who may face reduced benefits due to the termination of their Tax Credit award may be eligible for a transitional additional amount to compensate for any losses, known as a transitional element in Universal Credit. Furthermore, individuals deferring their State Pension or a non-State Pension at the time of their closure notice will not have this income considered for up to the first 52 weeks of their Pension Credit award.
The DWP explained that this exception to the normal rules allows claimants time to adjust to the new rules, as unclaimed pension income is ignored for Tax Credit purposes.
