DWP Announces Exact Date for Scrapping Major Benefit Claimed by 730,000 Brits

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By Lydia Amazouz Published on 27 May 2024 14:35
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The Department for Work and Pensions (DWP) has issued an update regarding its plans to scrap the Tax Credit benefit.

DWP Announces End of Tax Credit Claims Amid Transition to Universal Credit

The benefits department is currently working to shift those who claim legacy benefits onto Universal Credit, and this includes Tax Credit claimants.

There are currently two types of Tax Credits you can claim and these include Working Tax Credit and Child Tax Credit. At the moment, approximately 730,000 individuals claim either one or both of these benefits.

According to papers released by the department last month, outlining the shift towards Universal Credit, it was disclosed that the DWP intends to remove the provision that is presently allowing individuals to renew their Tax Credit requests or to claim the different Tax Credit if they are already receiving one.

This shift, which is set to be put into practice next year, will result in the complete termination of Tax Credit claims starting April 6, 2025. The paper states: “Regulation 8 is designed to prevent any renewal of existing Tax Credit claims or allow a person who is claiming one tax credit (for example Working Tax Credit), to claim the other Tax Credit (Child Tax Credit), and vice versa. This will also ensure there are no Tax Credit claims from April 2025.”

“Regulation 6A of the Universal Credit (Transitional Provisions) Regulations 2014 states that a person cannot make a claim to a Tax Credit. However, exceptions are provided in Regulation 6A(6) for existing Tax Credit claimants to claim the other Tax Credit and (7) for existing Tax Credit claimants to apply to renew their awards. These exceptions are now removed so there can be no more claims to a Tax Credit. This regulation does not come into force until 06/04/2025”.

If you're currently on Tax Credits, it is important to remember to renew your claim each year. The approaching renewal in July will be the last chance to do it, since after this point, the renewal of your benefit claim won't be possible.

DWP Phasing Out Legacy Benefits: Transition to Universal Credit Underway

New claims for Tax Credits are no longer being offered. The Department for Work and Pensions (DWP) has been gradually easing off legacy benefits over recent years, resuming the process last year after a temporary Covid-related pause. When managed migration started again, nearly 2.6 million individuals in the UK were still getting these traditional forms of assistance.

The six benefits that are being scrapped include:

  • Working Tax Credit
  • Child Tax Credit
  • Income-based Jobseeker's Allowance (JSA)
  • Income Support
  • Income-related Employment and Support Allowance (ESA)
  • Housing Benefit.

The Department for Work and Pensions (DWP) is slowly implementing Universal Credit, currently focusing on those who claim Tax Credits and Housing Benefit. You'll receive a migration notice in the post when your turn comes.

Upon delivery, you have three months to submit a claim for Universal Credit, if you fail, your benefit payments will be cut.

Claims can be made online or via phone by calling the Universal Credit Migration Notice helpline at 0800 169 0328. You can also consult your local Job Centre.

After submission of your claim, you'll wait five weeks before claiming your first Universal Credit payment, which will continue unless your circumstances change.

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