HomeBangladeshDWP says 'no more payments will be made' as tax credits to...

DWP says ‘no more payments will be made’ as tax credits to be scrapped

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The Department for Work and Pensions (DWP) has warned there will soon be “no more payments” of tax credits – as the benefit is being axed.

Huge changes to the welfare system will see everyone who claims tax credits move onto new benefits but they must apply themselves as the process won’t be automatic.

Claimants will have to move over to either Universal Credit or Pension Credit depending on their circumstances. Many claimants will have already moved off the various forms of tax credits after being contacted during 2024 as part of the mammoth process of switching households over.

But anyone still getting tax credits who has received a migration notice in the post must apply for Universal Credit or Pension Credit as soon as possible, the Government says.

Claimants have just three months to apply from when the letter was sent or will lose their payments, reports Birmingham Live. The Government told the publication: “Universal Credit is replacing tax credits. 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.”

The end of tax credits is part of a major overhaul of the welfare system which is seeing a number of benefits being axed and brought under the single benefit Universal Credit.

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