The Department for Work and Pensions has issued letters that could potentially result in some individuals losing their benefits. The DWP is dispatching a letter to all those who might be impacted by the cessation of HMRC tax credit payments, and certain claimants will need to take action.
Under the managed migration system, both the DWP and HMRC are issuing notices stating that tax credits will end on April 5, 2025. Those affected will have the opportunity to transfer their claim to Universal Credit, it has been confirmed.
If you or your partner are of State Pension age and receive Working Tax Credits or Working Tax Credits and Child Tax Credits, the Department for Communities will send you a 'Migration Notice' letter. This will inform you that you must make a claim for Universal Credit within three months from the date specified in your letter to continue receiving financial support.
You can claim Universal Credit even if you have money, savings and investments over £16,000 for 12 assessment periods. If you are receiving Housing Benefit when you get your Migration Notice letter, your entitlement to Housing Benefit will cease the day before the three-month deadline date on your Migration Notice.
However, Housing Benefit will be paid as usual for an additional two weeks after your Tax Credits claim ends, reports Birmingham Live.
If you opt to claim Universal Credit, you can request assistance with your housing costs during your application. However, if you decide against claiming Universal Credit, you'll need to reapply for Housing Benefit to receive help with housing expenses.
If you're sent a Migration Notice letter prompting you to claim Universal Credit, you have the option to claim Pension Credit instead, but be aware that you won't qualify for Transitional Protection in this case. Once a Pension Credit claim is lodged, the opportunity to claim Universal Credit is no longer available.
If you're eligible for Universal Credit, you should receive your first payment approximately five weeks after your claim. While waiting for your payment, you may be able to claim additional financial support to cover essential costs.
This includes a Universal Credit Contingency Fund grant, which doesn't need to be repaid.
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English (United States) ·