Thousands of benefit recipients in the UK are receiving letters notifying them of the upcoming phase-out of Tax Credits and the transition to Universal Credit.
The Department for Work and Pensions (DWP) is sending letters to thousands of benefit recipients in preparation for a major overhaul of the welfare system this year. The DWP has given a three-month warning before April, signaling that Tax Credits will be phased out as part of its ' Managed Migration ' plan. This plan aims to replace six existing benefits with Universal Credit .
The shake-up includes Tax Credits, Child Tax Credits, Income-based Jobseeker's Allowance (JSA), Income Support, Housing Benefit, and Income-related Employment and Support Allowance (ESA). As part of the DWP's Managed Migration strategy, which accelerated in September 2024 after restarting in 2022, claimants currently on old-style benefits are being sent 'migration notices'. These letters notify them they have a three-month period to lodge a Universal Credit claim, failing which their existing benefits will cease. Tax Credits will be the first legacy benefit to end this April, affecting current claimants who will need to make a move promptly given that no further claims will be processed. The DWP aims to ensure all Tax Credit recipients receive a migration notice. Social security and disability minister Sir Stephen Timms cautions against any delay in transitioning over, emphasizing the importance for families nationwide to think ahead as the new year begins. 'With this in mind, I encourage everyone who has received a migration notice to act as quickly as possible and move onto Universal Credit. We know how quickly time can pass when you're busy - and with just three months to go until Tax Credits close on the 5th of April - now is the time to respond to your Universal Credit migration notice to continue receiving benefits.' The DWP is aiming to send migration notices to all those claiming legacy benefits by the end of this year. This means hundreds of thousands of letters will be sent over the next 12 months
Welfare Reform Universal Credit Tax Credits Department For Work And Pensions Managed Migration
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