The DWP warns tax credit claimants to act fast to avoid losing their benefits as major changes to the welfare system are on the way
London: Big changes are coming to the welfare system, and if you’re getting tax credits, you need to pay attention. The Department for Work and Pensions (DWP) is sending out urgent warnings. If you don’t act quickly, you could lose your financial support.
So, here’s the deal: the DWP is phasing out the old benefits system. This means that if you’re currently receiving tax credits, you won’t automatically be switched over to Universal Credit or Pension Credit. You have to apply for the new benefits yourself, or your payments will stop in April.
If you’re one of the 594,000 families affected, you should have already received a letter from the DWP explaining what to do next. It’s crucial to keep an eye out for that letter because it will give you a three-month window to make your claim.
The government’s website is clear: to keep getting support, you must apply for Universal Credit by the deadline in your letter. If you can’t meet that deadline, reach out to the Universal Credit Migration Notice Helpline. They might give you more time if you have a good reason.
Citizen’s Advice is also a great resource. They can help you understand who can claim Universal Credit and what steps to take once you get that migration letter. They even offer info on extra financial support during this transition.
Just remember, if you don’t claim Universal Credit before the deadline, your old benefits will stop. But if you do apply in time, the DWP might give you some extra cash to make sure you’re not worse off. This is called ‘transitional protection’ and it helps bridge the gap until you’re fully on Universal Credit.
Some folks might even qualify for Universal Credit, even if they usually wouldn’t. This includes full-time students or those with savings over £16,000 who are currently on tax credits. They can get Universal Credit for up to a year.
However, a small number of people won’t qualify for either Universal Credit or Pension Credit. They can keep receiving tax credits until April 5, 2025, unless something changes in their situation sooner.
