Millions of households in the UK are being urged to act quickly and apply for Universal Credit or Pension Credit as the government phases out tax credits by 2025.
A benefit claimed by hundreds of thousands of people is set to be phased out by 2025. Households still on tax credits are being urged to act swiftly upon receiving a migration notice. The welfare system is undergoing a significant overhaul this April, with tax credits being substituted by Universal Credit or Pension Credit based on individual circumstances. Claimants must apply to ensure they transition smoothly.
Many have already switched from tax credits, but those who haven't will get a migration notice giving them a three-month window to join Universal Credit. Failure to do so will result in halted payments. The Government has contacted thousands about these updates, stressing the importance of prompt action upon notice receipt. The Government clarified: 'Universal Credit is replacing tax credits. The Department for Work and Pensions (DWP) or the Department for Communities (for Northern Ireland customers) will write to all eligible customers during 2024 and inform them of the need to move to Universal Credit, to continue to receive financial support.', reports Birmingham Live. 'If you do not claim by the deadline date in that letter your existing tax credits payments will stop, even if you have just renewed your tax credits claim. If you are claiming tax credits and are state pension age or over, the DWP or the Department for Communities will write to you to ask you to apply for Universal Credit or Pension Credit, depending on your circumstances.' 'A very small number of customers will not be eligible for Universal Credit or Pension Credit. These customers will be able to remain on and receive tax credits until April 5, 2025, unless a change in their circumstances ends tax credits sooner. After this date, tax credits will end, and no further tax credits payments will be made.
TAX CREDITS UNIVERSAL CREDIT PENSION CREDIT GOVERNMENT WELFARE
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
DWP announces full list of benefit pay rates for 2025 – including Universal CreditThe DWP has confirmed that benefits will rise in 2025 – here's how much they'll rise by
Read more »
John Swinney claims Scots should not face huge council tax rises in 2025The SNP Government has repeatedly frozen council tax rates since 2007 but local authorities are now struggling to deliver services.
Read more »
Motorists who drive older cars to face fresh car tax increase in 2025Motorists who drive older cars could be hit with a Vehicle Excise Duty (VED) increase in the very near future.
Read more »
Car Tax Hike: How to Avoid the Price Surge in 2025A new Labour government is set to introduce new car tax bands in 2025, impacting most vehicle owners. Tax expert Andy Wood advises drivers to plan ahead and budget for the increased costs. The changes will see a rise in annual Vehicle Excise Duty (VED) rates, particularly for older models taxed based on engine size.
Read more »
£600 tax increase for eight family cars under 2025 VED bandsAll new car buyers will see a rise in tax
Read more »
Canary Islands’ holiday resort loved by Brits to launch tourist tax in 2025The tax will be the 'first of its kind' in Spain
Read more »