Tax credits are being scrapped in 2025. (Image: Andrew Teebay Liverpool Echo)

Warning to everyone who claims DWP benefit as payments to be scrapped in 2025

by · Birmingham Live

A DWP benefit which has been claimed by hundreds of thousands of households will be scrapped in 2025. People who still receive tax credits have been told they need to take action when they receive a migration notice in the post.

Tax credits of various types are coming to an end in April, marking a huge change in the welfare system. They are being replaced by Universal Credit and Pension Credit, depending on circumstances, but people need to make sure they apply.

Many people will likely have already moved off tax credits. Anyone who need to take action will be sent a migration notice in the post. This will give them three months to ensure they are signed up to Universal Credit. Anyone who doesn't will have their payments stopped.

READ MORE: Exact date Universal Credit claimants will get extra £126 payment

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Thousands of people have already been contacted about the changes. The Government has urged anyone who receives a migration notice to take action as soon as possible.

The Government explained: "Universal Credit is replacing tax credits. The Department for Work and Pensions (DWP) or the Department for Communities (for Northern Ireland customers) will write to all eligible customers during 2024 and inform them of the need to move to Universal Credit, to continue to receive financial support.

"If you do not claim by the deadline date in that letter your existing tax credits payments will stop, even if you have just renewed your tax credits claim. If you are claiming tax credits and are state pension age or over, the DWP or the Department for Communities will write to you to ask you to apply for Universal Credit or Pension Credit, depending on your circumstances.

"A very small number of customers will not be eligible for Universal Credit or Pension Credit. These customers will be able to remain on and receive tax credits until April 5, 2025, unless a change in their circumstances ends tax credits sooner. After this date, tax credits will end, and no further tax credits payments will be made."