The Department for Work and Pensions (DWP) is urging people on Tax Credits to respond to their Universal Credit migration notices so they continue to receive benefit payments before the legacy benefit closes in April 5, 2025. Anyone affected by the ending of Tax Credits will be sent a migration notice letter before the end of this month and invited to apply for Universal Credit.
The DWP confirmed that over one million people are transferring from the legacy benefits system to Universal Credit, Legacy benefits such as Tax Credits, Housing Benefit, Income Support, Jobseeker’s Allowance and Income-Related Employment and Support Allowance are being phased out to bring government financial support into one place. DWP said that the ‘majority’ of people will not be worse off when they move to Universal Credit.
Anyone who needs support is also being encouraged to contact DWP for a smooth transition before their deadline. More information can be found on the dedicated Migration Notice page on GOV.UK here.
It’s important to be aware that people who receive a migration notice have three months from the date on their letter to apply for Universal Credit. However, you can ask the DWP for an extension to complete the application – full details on GOV.UK here.
Commenting on the final phase of the migration process for those on Tax Credits, Sir Stephen Timms, DWP Minister for Social Security and Disability, said: “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.
“We are committed to ensuring a smooth transition and customers will have the full support of DWP staff to help manage this change.”
DWP has also said that claimants should not apply for Universal Credit or Pension Credit before getting their Migration Notice. Those Tax Credit claimants who have received their notice and haven’t yet applied for Pension Credit or Universal Credit will still be able to qualify for a Winter Fuel Payment.
This is because Winter Fuel Payment is paid automatically to people who make a new claim for a qualifying means-tested benefit before December 21, 2024.
Transitional protection
People who are sent a Migration Notice or Tax Credits Closure Notice and would otherwise see a reduction in benefit entitlement following the closure of their Tax Credit award may be considered for an additional amount to make up the shortfall – this is called a transitional additional amount.
For those transferring to Universal Credit, it is called a transitional element.
People who are deferring their State Pension or a non-State Pension when their closure notice is issued, will not be treated as if they are receiving that income for up to the first 52 weeks of their Pension Credit award.
DWP explained: “As unclaimed pension income is ignored for Tax Credit purposes, this exception to the normal rules on the treatment of such notional income applies to these claimants to allow time to adjust to the new rules.”