The Department for Work and Pensions (DWP) has begun sending letters to individuals who receive tax credits, informing them about upcoming changes that will take effect from April 2025. This change means that tax credit payments from HMRC will officially end, and claimants will need to take action to continue receiving financial support. If you receive tax credits, here’s what you need to know and what steps you may need to take.
DWP’s Letter to Tax Credit Claimants
The DWP is issuing letters to all individuals who may be affected by the discontinuation of tax credit payments. These letters, known as ‘Migration Notices,’ are sent under the managed migration system, notifying recipients that their tax credits will stop on April 5, 2025.
If you or your partner receive Working Tax Credits or a combination of Working Tax Credits and Child Tax Credits and are of State Pension age, the Department for Communities will send you this notice. You will then have three months from the date mentioned in the letter to switch to Universal Credit (UC) if you wish to continue receiving financial support.
How to Transition to Universal Credit
If you are affected by these changes, you have the option to claim Universal Credit (UC) to ensure you continue receiving support. Here’s what you should know about the transition:
1. Eligibility and Financial Considerations
- You can claim Universal Credit even if you have savings or investments over £16,000, but only for 12 assessment periods (around 12 months).
- If you receive Housing Benefit, it will end one day before your three-month deadline mentioned in the Migration Notice. However, you will continue to receive Housing Benefit payments for two additional weeks after your tax credits stop.
2. What Happens If You Don’t Claim Universal Credit?
- If you do not apply for Universal Credit, you will need to reapply for Housing Benefit to continue receiving housing support.
- If you receive a Migration Notice letter but prefer to claim Pension Credit, you can do so. However, choosing Pension Credit over Universal Credit means you won’t be eligible for Transitional Protection, which ensures your income doesn’t drop significantly during the switch.
- Once you claim Pension Credit, you cannot switch back to Universal Credit.
How Long Does It Take to Receive Universal Credit?
If you qualify for Universal Credit, your first payment will arrive approximately five weeks after submitting your claim. However, if you are struggling with financial difficulties while waiting for your first UC payment, you may be eligible for extra support, such as:
- Universal Credit Contingency Fund Grant – a one-time payment to help with essential expenses, which does not need to be repaid.
The end of tax credit payments from April 5, 2025, is a significant change for many individuals relying on this financial support. The government is encouraging affected claimants to switch to Universal Credit within three months of receiving their Migration Notice letter to ensure a smooth transition. While those with savings over £16,000 can still claim UC for up to 12 months, it’s crucial to act promptly to avoid any disruptions in financial assistance. If you are unsure about your options, seeking guidance from DWP or a financial advisor is recommended to make the best decision for your circumstances.
| Visit for More News and Updates | WSOA NEWS |
FAQ’s
Why is the DWP ending tax credit payments?
Tax credit payments are ending as part of the government’s transition to Universal Credit, which consolidates multiple benefits into one system.
What should I do if I receive a Migration Notice letter?
You should apply for Universal Credit within three months of receiving the letter to ensure you continue getting financial support.
Can I still claim Universal Credit if I have savings over £16,000?
Yes, but only for 12 assessment periods (12 months). After that, your eligibility will be reassessed.
What happens to my Housing Benefit when I switch to Universal Credit?
Your Housing Benefit will end one day before your Migration Notice deadline, but you will receive an extra two weeks of Housing Benefit payments.
What if I choose to claim Pension Credit instead of Universal Credit?
You can claim Pension Credit, but you won’t receive Transitional Protection, meaning you could lose out on additional financial support.
How long does it take to receive Universal Credit payments?
The first payment is usually made around five weeks after you submit your claim.
Can I get financial help while waiting for my first Universal Credit payment?
Yes, you may qualify for a Universal Credit Contingency Fund grant, which helps cover essential costs and does not need to be repaid.
As a new Pensioner I get £221 a week but the legal minimum wage is £457. No wonder Pensioners struggle.
We seem to forget every Government since the end of WWll has known that there was a period of Baby Boom and those Baby Boomers are now Pensioners. No Government has made provision for this or the massive explosion of Technology which has put a massive number of people out of work. Of course this means less revenue for the Chancellor from Taxes. All because Governments since the late 1940’s have done nothing to prevent what they all knew was coming.