Tax Credits are ending

Tax credits are coming to an end, and most people will need to apply for Universal Credit instead.

Look out for a letter called a Universal Credit Migration Notice from the Department for Work and Pensions (DWP) explaining what you’ll need to do, and by when.

If you are claiming tax credits and are of State Pension Age DWP will write to you to ask you to apply for Universal Credit or Pension Credit, depending on your circumstances.

You won’t be moved automatically, so it’s important to act quickly and follow the instructions in the letter, otherwise your benefits will stop.

If you receive a Migration Notice, meaning you need to go through the managed migration process, and you end up being entitled to less under Universal Credit than your current legacy benefits, you could be entitled to a temporary top-up payment so that you do not lose out. This is called a ‘transitional protection element’.

To continue to receive financial support, you will need to claim Universal Credit by the deadline stated in your Migration Notice letter, even if you have just renewed your tax credits claim. There may be some additional benefit to waiting until after 8 April 2024 to start your Universal Credit claim, this is because, around this date, most benefit rates will be increased by 6.7%.

To find out more about the support Ashford Advice can provide to help you switchover. Call 012233 626185