Tax Credits will end on April 5, 2025, the first of this year’s legacy benefit closures. Claimants must switch to Universal Credit when they receive their migration notice letter, or payments will cease.
But, thousands of those who received Tax Credits have still not registered for Universal Credit, and time is fast running out.
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Those who miss their deadline date can still move to Universal Credit later, but they won’t receive important financial protections designed to prevent them from losing money.
New research carried out by Ipsos UK on behalf of the Department for Work and Pensions about the low take-up found that while 78 per cent of respondents claimed to know about Universal Credit, seven in 10 were unaware of transitional protection payments.
This protection helps people who receive less under Universal Credit than their current benefits. For example, if someone receives £600 from Tax Credits but would only be entitled to £400 under Universal Credit, they can receive a £200 top-up to maintain their current level.
Transitional protection sounds short-term, but it actually lasts until the amount you get in Universal Credit is more than the amount you used to get on your old benefits – for example, because Universal Credit amounts are increased in line with inflation each year, or you become eligible for more support.
But, it only continues while your circumstances stay the same – and can be lost due to a significant life change that causes your eligibility to be reassessed – for example, you move in with a partner.
What is Managed Migration?
The move is part of the DWP’s ongoing managed migration programme, which aims to move all claimants of legacy benefits to Universal Credit by March 2026.
These include
- Child Tax Credits
- Housing Benefit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credits
There has been significant confusion about the transition process, with many recipients at risk of losing their transitional protection if they fail to respond within three months of receiving their notice.
The DWP plans to send migration notices to all legacy benefit claimants by the end of this year. The migration notice will detail the exact date one needs to make a claim.
Those needing assistance with their migration can contact the Universal Credit Migration Notice Helpline.