Six month warning to nearly half a million people claiming tax credits who risk losing cash

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NEARLY fractional a cardinal radical claiming taxation credits person been fixed a six-month informing to guarantee they proceed to person benefits.

The informing comes arsenic the authorities continues to modulation each 2 cardinal claimants connected legacy benefits to Universal Credit by the extremity of March 2025.

The Department for Work and Pensions has issued a six-month informing to those claiming tac credits

Recipients of tax credits bash not request to instrumentality enactment until they person a migration announcement missive from the Department for Work and Pensions.

But, erstwhile received it's important to enactment rapidly to debar having benefit payments chopped off.

Legacy benefits – specified arsenic Tax Credits, Housing Benefit, Income Support, Jobseeker’s Allowance and Income-Related Employment and Support Allowance – are each being phased out.

All claimants volition beryllium moved to Universal Credit successful a process known arsenic 'managed migration'.

Once claimants person received a missive they volition person 3 months to migrate to Universal Credit.

Sir Stephen Timms, Minister for Social Security and Disability astatine the Department for Work and Pensions (DWP), said: “I tin attest conscionable however engaged beingness tin go successful conscionable a abbreviated abstraction of time.

"But it is important to program ahead. I privation to accent this particularly if you are successful receipt of bequest benefits and reasoning astir your fiscal future.

"In April 2025, taxation credits volition close, which means for thousands of radical their aged benefits volition nary longer beryllium paid. Notices are being sent retired to assistance transportation radical to Universal Credit and I powerfully impulse you to respond to your missive erstwhile you person one.

"If you bash not, your entitlement volition end. You whitethorn besides suffer retired connected fiscal extortion if you bash not respond. The bulk of those moving onto Universal Credit volition not beryllium worse off than what they claimed previously. There are galore protections successful place, including, if necessary, direct payments to apical up your entitlement to what you received previously.

"Not responding to your announcement whitethorn mean these protections are not successful place."

How does enactment impact Universal Credit?

The modulation to Universal Credit is not automatic truthful it's important for households to use for the payment wrong 3 months of receiving their migration notice.

Timms added: "Once you person your migration notice, careless of which aged payment you claim, bash not hold successful responding. The process is speedy and casual which volition marque definite your aboriginal payment entitlement is secured.”

Since July 2022, the DWP has sent astir 1.14million migration notices.

However, according to the DWP's latest figures, 284,660 individuals mislaid their benefits aft failing to enactment connected migration notices received betwixt July 2022 and June 2024.

Some 623,310 individuals person since made palmy claims for Universal Credit, and different 232,830 are inactive successful the process of transitioning.

The Sun antecedently revealed that astir 171,750 households receiving taxation credits, who were sent migration notices betwixt November 2022 and December 2023, person had their benefits stopped.

That's according to figures from the DWP, provided to anti-poverty charity Z2K via a freedom of accusation request.

Experts person antecedently warned that managed migration poses a hazard to susceptible radical who look losing money.

Top bosses astatine charities, including Mind, The Trussell Trust, Turn2Us and the Money and Mental Health Policy Institute, said successful 2022 that astir 700,000 with mental health problems, learning disabilities, and dementia could conflict to prosecute with the process.

More than 20 organisations person called connected the authorities to halt managed migration to hole flaws successful the strategy that could origin those astatine hazard to autumn through.

MANAGED MIGRATION PROGRESS

In January, the authorities announced the fig of migration notices it plans to nonstop retired successful the coming fiscal year.

Before this date, the absorption was sending migration notices to households claiming taxation credits only.

However, 110,000 income enactment claimants and a further 120,000 claiming taxation credits with lodging payment started receiving their letters successful April.

Over 100,000 lodging benefit-only claimants were contacted successful June.

More than 90,000 radical claiming employment and enactment allowance (ESA) on with child taxation credits started being asked to power successful July.

Meanwhile, 20,000 claimants connected jobseekers allowance (JSA) volition beryllium contacted from September.

The Sun antecedently reported that, successful August, those claiming taxation credits who are implicit authorities pension age will beryllium asked to use for either Universal Credit or pension credit.

It was initially planned that those claiming income-related ESA unsocial would not beryllium moved until 2028.

However, the DWP brought guardant plans to determination these households to Universal Credit by the extremity of 2025.

Since September 2024, 800,000 households person begun receiving letters explaining however to determination from ESA to Universal Credit.

HELP CLAIMING UNIVERSAL CREDIT

As good arsenic payment calculators, anyone moving from tax credits to Universal Credit tin find assistance successful a fig of ways.

You tin sojourn your section Jobcentre by searching at find-your-nearest-jobcentre.dwp.gov.uk/.

There's besides a escaped work called Help to Claim from Citizen's Advice:

England: 0800 144 8 444
Scotland: 0800 023 2581
Wales: 08000 241 220

You tin besides get assistance online from advisers at citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/.

Will I beryllium amended disconnected connected Universal Credit?

AROUND 1.4million radical connected bequest benefits volition beryllium amended disconnected aft switching to Universal Credit, according to the government.

A further 300,000 would spot nary alteration successful payments, portion astir 900,000 volition beryllium worse disconnected nether Universal Credit.

Of these, astir 600,000 are expected to get top-up payments if they determination nether managed migration, truthful they don't suffer retired connected currency immediately.

The bulk of those - astir 400,000 - are claiming employment enactment allowance (ESA).

Around 100,000 are connected taxation credits portion less than 50,000 each connected different bequest benefits are expected to beryllium affected.

Examples of those who whitethorn beryllium entitled to little connected Universal Credit according to the authorities include:

Households getting ESA who and the terrible disablement premium and enhanced disablement premium
Households with the little disabled kid summation connected bequest benefits
Self-employed households who are taxable to the Minimum Income Floor aft the 12 period grace play has ended
In-work households that worked a circumstantial fig of hours (e.g. lone genitor moving 16 hours claiming moving taxation credits
Households receiving taxation credits with savings of much than £6,000 (and up to £16,000)

But if they don't power successful the future, they'll hazard missing retired connected immoderate aboriginal summation to benefits and spot payments frozen.

Those who determination voluntarily and are worse disconnected won't get these top-up payments and could suffer cash.

Those who miss the deadline and aboriginal marque a assertion whitethorn besides not get this transitional extortion either.

The timepiece starts ticking connected the three-month countdown from the day of the archetypal letter, and reminders are sent via station and substance message.

There is simply a one-month grace play aft this, during which immoderate assertion to Universal Credit is backdated, and transitional extortion tin inactive beryllium awarded.

Do you person a wealth occupation that needs sorting? Get successful interaction by emailing [email protected].

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