The UK government is phasing out Tax Credits, a key benefit for parents, by April 2025. Claimants will need to transition to Universal Credit to continue receiving financial support.
The Department for Work and Pensions (DWP) has announced the phasing out of Tax Credits, a key benefit for parents, within months. Starting April 2025, no further Tax Credit payments will be made, including Child Tax Credits. This move forces recipients to transition to Universal Credit before the deadline or risk losing all benefits. The government aims to consolidate financial support under one system.
While many households have already migrated to Universal Credit, others are yet to make the switch. They may face dire consequences if they remain inactive. The DWP emphasizes the importance of responding to migration notices within three months of receipt to continue receiving benefits. Failure to do so could result in the loss of government assistance. The government explains that 'Universal Credit is replacing tax credits.' Those who do not claim Universal Credit by the specified deadline in their migration notice will have their existing Tax Credit payments stopped, even if they've recently renewed their claim. A very small number of customers might not qualify for Universal Credit or Pension Credit. In such cases, they can remain on Tax Credits until April 5, 2025, unless a change in their circumstances necessitates an earlier termination. After this date, Tax Credits will cease to exist, and no further payments will be issued. This plan aligns with the government's managed migration scheme, which gradually transfers claimants from legacy benefits like Tax Credits, Employment and Support Allowance (ESA), and income-based Jobseeker's Allowance to Universal Credit.The DWP urges anyone claiming Tax Credits who receives a letter from the department to respond promptly to ensure they continue receiving benefits. The government assures that the majority of people will not experience a financial disadvantage under Universal Credit. The DWP is committed to a smooth transition and provides comprehensive support to help customers manage this change. Anyone requiring assistance is encouraged to contact the DWP before their deadline. Remember, responding to your migration notice within three months is crucial to avoid losing your benefits.
TAX CREDITS UNIVERSAL CREDIT GOVERNMENT BENEFITS SOCIAL SECURITY MANAGED MIGRATION
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