Universal Credit and other benefits are about to change a lot in April. You should understand these changes well and the possible impact on your family.
Tax Credit Deadline
There is an important deadline for tax credits. HMRC has issued reminders to some 730,000 households that they must report any changes affecting their payments. The essentials are:
- Working Tax Credits: The basic element is worth £2,435.
- Child Tax Credits: Valued at £3,455, with additional amounts for single parents or those with disabilities.
Tax credits have to be renewed every year. The renewal packs were supposed to reach you by June 20th, and you should respond by July 31st. Inform HMRC on the following points:
- Income details for the last tax year (April 6, 2023, to April 5, 2024).
- Changes in working hours, childcare costs, or children's education status.
If a person provides wrong details to HMRC, they may get fined, from £300 to more substantial penalties.
Moving to Universal Credit
“Managed migration” involves moving two million people from previous benefits onto Universal Credit by the government. Here’s what you need to know:
- Action Required: You have three months from receiving your migration letter to move to Universal Credit.
- Consequences: Missing the deadline will stop your benefit entitlement. Delayed claims result in the loss of transitional protection.
- Current Focus:
- 120,000 households on tax credits with housing benefit received migration letters in April.
- 110,000 income support claimants also received their letters.
For example, in over 31,000 households this led to financial losses of around £4,130 per year after failing to act on these notices of migration.
Early Benefit Payments
In the coming month, due to the August bank holiday, several thousand people are to receive their benefits early. When payment dates coincide with a bank holiday or weekend, it is made earlier on the previous working day.
For this reason, the benefit due on 26th August will be paid on 23rd August. Also, those for 24th and 25th will come in on that same date.
The department of work and pensions (DWP) and HMRC have confirmed that among these, the following benefits will be paying out in August:
- Affected Benefits:
- Attendance Allowance
- Carer's Allowance
- Disability Living Allowance
- Income Support
- Jobseeker's Allowance
- Pension Credit
- Personal Independence Payment (PIP)
- State Pension
- Universal Credit
- Child Benefit (paid by HMRC)
- Tax Credits (paid by HMRC)
If you don’t get your payment on 23rd of august, contact DWP. You could as well register a complaint if there is any problem concerning wrong payments.
Child Benefit Deadline
In order to avoid losing up to £1,331 in child benefit payments, parents must act within weeks. HMRC has been sending letters to parents about their teenagers asking them for information about their future education plans.
- Annual Value:
- £1,331 for the first child.
- £881 for each additional child.
Parents should notify HMRC by 31st of August if their child is staying in school.
- Education Requirements: Benefits continue up to age 19 if the child is enrolled in:
- A-levels or Scottish Highers.
- International Baccalaureate.
- Home education (started before 16 or assessed by the local authority).
- T levels or NVQs (up to level 3).
Unpaid approved training courses also apply for continued benefits in Wales, Northern Ireland, and Scotland.
The child benefit will also go on for any children who are in an approved unpaid training course e.g. Foundation Apprenticeships, Traineeships, or the Jobs Growth Wales+ scheme in Wales; PEACEPLUS Youth Programme 3.2, Training for Success, or Skills for Life and Work in Northern Ireland; and Employability Fund programme or No One Left Behind in Scotland.
This translates to £25.60 every week for the first child and £16.95 per additional child that a family has. Parents must write back to HMRC by September if they want to keep getting these benefits.