Thousands of people are being urged to respond to an official DWP letter before the deadline as their existing payments will end for good in the spring (Image: GETTY)

DWP 'don't delay' warning to 210,000 people who could see benefits stopped

by · Birmingham Live

More than 210,000 people are being urged to take action to ensure they keep receiving benefit payments to help with their essential living costs. In April, the Department for Work and Pensions announced it would be "accelerating" the transfer of people from old-style legacy benefits onto Universal Credit.

Two of the affected benefits are Working Tax Credit and Child Tax Credit, both administered by HM Revenue and Customs. The new Labour Government has announced that HMRC will close down the tax credits system permanently in April 2025, giving claimants just six months to make the move or see their existing payments terminated.

The aim is for everyone on legacy benefits to have been sent a Migration Notice letter by December 2025 so all six of the affected legacy benefits can be discontinued after that financial year ends. The final wave of these letters started to be sent out in September.

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The huge changeover could mean people having their benefits stopped this Christmas if they fail to engage with the Department's 'managed migration' process. Claimants are advised to make the move sooner rather than later to avoid an income drop.

The DWP sent 500,000 migration notices to people who were only claiming one or both types of tax credits during 2023/2024. This financial year, it is posting around 440,000 notices to other legacy claimants over a period of six months.

This includes 120,000 people who receive tax credits alongside Housing Benefit and 90,000 who receive tax credits coupled with income-related Employment and Support Allowance (ESA), giving a total of 210,000. Additionally, an unspecified number of other people who are of pension age and are in receipt of tax credits will have to move either to Universal Credit or Pension Credit, depending on their circumstances.

These groups in particular are all at risk of a dramatic and sudden income drop if they don't make the switch before tax credits are abolished next spring. Anyone who receives a Migration Notice must start a Universal Credit (or, in some cases, Pension Credit) claim within three months unless they are granted extra time to do so.

Sir Stephen Timms, Minister for Social Security and Disability, said: "Having three months to make a move may feel like a long time but life can often distract you elsewhere. For the best chance to secure your benefit entitlement don’t delay with responding to your migration notice.

"We are committed to ensuring a smooth transition and customers will have the full support of DWP staff to help manage this change."

The Universal Credit Migration Notice helpline is available on 0800 169 0328 if you need support with moving across from your legacy benefits. The helpline is open Monday to Friday, from 8am to 6pm. You can also get assistance from the Citizens Advice Help to Claim service.

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