Three month DWP warning to half a million claiming tax credits who risk losing benefits cash
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HUNDREDS of thousands of people who claim tax credits have been given a three-month warning to ensure they continue to receive benefits. The government plans to move all legacy benefits claimants to Universal Credit by March 2026. People who receive Tax Credits do not need to do anything until they receive a migration notice letter from the Department for Work and Pensions (DWP).
But once they receive the letter it is important they act quickly to avoid having their benefit payments cut off. The government is phasing out several legacy benefits by March 2025. These are: Tax Credits, Income Support, income-based Jobseeker’s Allowance (JSA) and Housing Benefit.
The DWP aimed to send migration notices to these households - around 440,000 in total - by September 2024. Households who receive income-related Employment and Support Allowance (ESA) should receive a letter by December 2025. The DWP began to send migration notices to these claimants - around 800,000 in total - in September 2024.
All people who receive these benefits will be moved to Universal Credit in a process called ‘managed migration’. The DWP plans to contact all remaining legacy benefits claimants by December 2025. Once they receive a letter they have three months to move over to Universal Credit.
Their migration date should be made clear in their migration notice. Once you move to Universal Credit you cannot go back to your old benefits. Sir Stephen Timms, minister for social security and disability, warned households not to delay in moving to Universal Credit.