Thousands of parents have received an urgent warning letter from the DWP as as a key benefit ends this weekend.
Tax Credits will end on April 5 2025, the first of this year's legacy benefit closures. Claimants must switch to Universal Credit when they receive their migration notice letter, or payments will cease.
But, many of those who received Child Tax Credits and Working Tax Credits have still not registered for Universal Credit, and will not get transitional protection, which can be worth thousands of pounds.
The DWP Tax Credits website says: "Tax credits end on 5 April 2025. No more payments will be made after that. You’ll be sent a letter if you are eligible for Universal Credit or Pension Credit instead."
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Those who miss their deadline date can still move to Universal Credit later, but they won't receive transitional protection, an important financial cushion designed to prevent them from losing money.
Research carried out by Ipsos UK on behalf of the Department for Work and Pensions about the low take-up found that while 78 per cent of respondents claimed to know about Universal Credit, seven in 10 were unaware of transitional protection payments.
What is transitional protection?
This protection helps people who receive less under Universal Credit than their current benefits. For example, if someone receives £600 from Tax Credits but would only be entitled to £400 under Universal Credit, they can receive a £200 top-up to maintain their current level.
Gov.uk says: "Many people will be eligible for at least the same amount on Universal Credit as their previous benefit.
"If your Universal Credit entitlement is less than your previous tax credits or benefits then you may be eligible for financial protection when you move to Universal Credit.
"This additional amount is known as 'transitional protection'."
Transitional protection sounds short-term, but it actually lasts until the amount you get in Universal Credit is more than the amount you used to get on your old benefits – for example, because Universal Credit amounts are increased in line with inflation each year, or you become eligible for more support.
But, it only continues while your circumstances stay the same - and can be lost due to a significant life change that causes your eligibility to be reassessed – for example, you move in with a partner.
What is Managed Migration?
The move is part of the DWP's ongoing managed migration programme, which aims to move all claimants of legacy benefits to Universal Credit by March 2026.
These include
- Child Tax Credits
- Housing Benefit
- Income-based Jobseeker's Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credits
There has been significant confusion about the transition process, with many recipients at risk of losing their transitional protection if they fail to respond within three months of receiving their notice.
The DWP plans to send migration notices to all legacy benefit claimants by the end of this year. The migration notice will detail the exact date one needs to make a claim.
Those needing assistance with their migration can contact the Universal Credit Migration Notice Helpline.
It's open Monday to Friday, 8am to 6pm
Phone: 0800 169 0328
0800 phone numbers are free to call from mobiles and landlines.
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