DWP Alert: Failing to Respond to This Letter Could Cost You £3,935

UK government is making changes to tax credits – know its impact and necessary steps

Officers in the UK are ready to change the rules related to tax credit, and they can affect many recipients. If you are a taxpayer, who receives a letter from the department (DWP) for work and pension, and suggests that your tax credit payments are closed.

HM Revenue and Customs (HMRC) has validated that Tax Credits will quit on April 5, 2025,. To preserve receiving eligible economic assistance, you will switch to Universal Credit before the date.

In the article, we will tell you what Migration Notice Letter means, as well as how your payment amount will change, and let you know why timely action is required.

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Who will be affected by the changes to tax credits?

The government is replacing tax credits with Universal Credit. If you’re receiving any of the subsequent blessings, you’ll need to replace to Universal Credit:

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

If you are receiving any of these benefits, the DWP will send you a Migration Notice Letter, giving you information on the next steps.

How will switching to Universal Credit change your payment amount?

Switching to Universal Credit may change the amount you receive. However, the government has put in place transitional protection to ensure you don’t lose money.

For example:

• If you’re currently receiving £327.91 a month in tax credits but your entitlement to Universal Credit becomes £227, you’ll be given £100.91 extra support.
• This means your income of £327.91 a month will remain, but the benefit will be temporary.

Note: This transitional protection will only be available if you apply within the time limits set out in the Migration Notice Letter and your financial situation remains the same.

Benefits of switching to Universal Credit

If you have received a Migration Notice Letter, you should apply straight away. Delaying could result in your financial support being stopped, and may make it more difficult to get Universal Credit in the future.

Exemptions from some rules: If you have got any doubts, go to the authentic website of DWP or HMRC or touch them for help.

Important:
If your savings are still more than £16,000 after 12 months, you won’t be eligible to receive Universal Credit.

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Special rules for mixed-aged couples

If you and your partner are of various ages (ie, one person is above the State Pension Age and the alternative is under), special policies observe to you.

What do you need to know?

• Your application has to be made properly following the instructions in the Migration Notice Letter.
• Any failure to do so, including late applications, could result in withholding of your tax credits and housing benefit.
• Applicants with accounts over £16,000 may still obtain Universal Credit as long as the claim is submitted in time.

Last date to switch to Universal Credit – 5 April 2025

If you have received a Migration Notice Letter, don’t ignore it.

5 April 2025 is the last date to switch to Universal Credit. If you don’t apply before then, your financial support may stop.

To take advantage of transitional protection in Universal Credit,

1. Apply on time
2. Check your letters regularly
3. Don’t forget to take the necessary steps

If you have got any doubts, go to the authentic website of DWP or HMRC or touch them for help.

Conclusion

If you’re receiving tax credits, now could be the right time to interchange to Universal Credit. This will assist you to retain receiving monetary aid and keep away from sudden loss of earnings. Apply on time and secure your benefits!

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