DWP proclaims tax credit to quit on five April 2025, follow for Universal Credit now
The Department for Work and Pensions (DWP) has confirmed that tax credit would cease on 5 April 2025, since the Government intends to migrate all recipients to Universal Credit.
Nevertheless, many humans are still not applying for Universal Credit, even after receiving a migration letter from the DWP. If you receive Working Tax Credit or Child Tax Credit, now is pressing to act in order to avoid losing your payments.
Why it’s important to move to Universal Credit
1. Your payments will forestall in 2025
If you do not observe for Universal Credit, your tax credits will stop on five April 2025.
You will need to start a brand new claim, that may take the time, and can result in you dropping monetary help.
2. You may be eligible for Transitional Protection Payments
If your entitlement to Universal Credit is less than your current tax credits, you may be eligible for Transitional Protection.
This will mean you get an extra payment to match your previous benefit amount.
Example:
- If you’re currently receiving £600 tax credits but are simplest eligible for £400 underneath Universal Credit, transitional protection will fill the £two hundred gap so you simplest get £600.
- This protection can last for several years, however you could lose it in case your situations change drastically, along with beginning a higher-paid task, moving in with a accomplice, or reaching nation pension age.
- Most humans don’t know about this advantage, with one survey finding 70% of claimants hadn’t heard of transitional protection.
Key Deadlines and Important Dates
| Event | Date |
|---|---|
| Tax Credits End | April 5, 2025 |
| Final Migration Notices Sent | By End of 2024 |
| Universal Credit Transition Completion | March 2026 |
What happens if you do nothing?
If you don’t apply for Universal Credit, your tax credits will automatically stop in 2025.
You could apply at a later date for Universal Credit, but generally, it would give you a lesser entitlement than what you receive now, which means you might miss out on thousands in additional financial support. What is Managed Migration? DWP’s Managed Migration is a program that will be transferring all legacy benefit recipients onto Universal Credit by 2026.
Which benefits will now migrate to Universal Credit?
The following legacy benefits will be replaced under Universal Credit:
- Child Tax Credit
- Working Tax Credit
- Housing Benefit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
What should you do if you have received a migration notice?
- You must apply for Universal Credit within three months.
- The DWP will ship notices to all affected beneficiaries by means of the quit of 2024.
- The closing date to use can be furnished in your letter.
- Many people are still now not responding to their migration note, that may positioned them liable to losing their benefits.
How to apply for Universal Credit?
You can apply for Universal Credit online by visiting gov.uk/universal-credit.
If you need help with your application, you can also get help from the Universal Credit Migration Notice Helpline.
Universal Credit Migration Helpline
Phone number: 0800 169 0328
Time: Monday to Friday, 8:00 to 18:00
If you need help with the application or migration process, contact Help line as soon as possible.
Why you should act now
- Make sure you keep receiving payments after 5 April 2025.
- Take advantage of Transitional Protection if your Universal Credit entitlement is less than your current benefit.
- Avoid delays in the Universal Credit application process.
- Millions of people are yet to register, and time is running out. Apply now so you don’t lose your financial support.
For extra facts, go to gov.United kingdom/commonplace-credit or name 0800 169 0328.
The ending of Tax Credits in 2025 is a full-size exchange. If you are receiving Tax Credits, apply for Universal Credit as soon as you receive your Migration Notice.
If you don’t apply, you may lose your advantages and miss out on Transitional Protection. Check your Migration Letter and follow these days.
FAQs
What is the urgent warning from Martin Lewis about DWP tax credit claimants?
Martin Lewis urges tax credit claimants to act quickly to ensure they don’t miss out on critical payments or support.
Why should DWP tax credit claimants act now?
Changes in rules or deadlines may impact claimants’ eligibility, and prompt action is needed to secure their entitlements.
What could happen if tax credit claimants don’t act in time?
Failure to respond could lead to missing out on valuable payments or delays in receiving financial support.