A warning has been issued to those claiming Tax Credits ahead of a major change next month.
The Department for Work and Pensions (DWP) has announced that more benefit claimants on Tax Credits will need to complete their move to Universal Credit from April.
Affected claimants will receive letters notifying them they need to take action.
By migrating to Universal Credit, with the support of the DWP, claimants will continue to receive the benefit they are entitled to through a future-proofed modern benefits system.
In most cases, individuals will be better off following a move from legacy benefits to Universal Credit.
However, where an individual’s entitlement to Universal Credit would be lower than their legacy benefits entitlement, in the vast majority of cases, they will be entitled to a top-up payment known as Transitional Protection.
This means that their Universal Credit entitlement will be the same as their legacy benefit entitlement at the point they move.
Minister for Employment, Guy Opperman MP said: “Universal Credit has proven itself as a benefits system fit for the modern age, having dealt with the unprecedented demand of 3.7 million claims during the pandemic.
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“The movement of those on legacy benefits to Universal Credit will ensure we can continue to provide the best level of support to benefit recipients through an effective and streamlined system.
“This Government remains committed to supporting the most vulnerable in society. I want to encourage all those who receive their migration notices to take action to ensure that they continue to receive the benefits they are entitled to.”
The Government has said it remains committed to moving all legacy benefit claimants onto Universal Credit, starting with claimants on Tax Credits.
From April, there will be an increase in letters known as Migration Notices being issued. Recipients who fail to act risk losing their current benefit entitlements.
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