DWP letter warning for thousands claiming benefits

In anticipation of a sweeping overhaul of the welfare system this year, the Department for Work and Pensions (DWP) is dispatching letters to thousands of benefit recipients. A three-month heads-up has been issued by the DWP in the lead up to April, signalling that Tax Credits will be phased out as part of its "Managed Migration" plan aimed at replacing six existing "legacy benefits" with Universal Credit.

The impending shake-up includes Tax Credits, Child Tax Credits, Income-based Jobseeker's Allowance (JSA), Income Support, Housing Benefit, and Income-related Employment and Support Allowance (ESA).

As part of the DWP's Managed Migration strategy, which accelerated in September 2024 after restarting in 2022, claimants currently on old-style benefits are being sent "migration notices". These letters notify them they have a three-month period to lodge a Universal Credit claim, failing which their existing benefits will cease.

Tax Credits will be the first legacy benefit to end this April, affecting current claimants who will need to make a move promptly given that no further claims will be processed henceforth. The DWP aims to ensure all Tax Credit recipients receive a migration notice.

Social security and disability minister Sir Stephen Timms cautions against any delay in transitioning over, emphasising the importance for families nationwide to think ahead as the new year begins, reports the Mirror.

"With this in mind, I encourage everyone who has received a migration notice to act as quickly as possible and move onto Universal Credit. We know how quickly time can pass when you're busy - and with just three months to go until Tax Credits close on the 5th of April - now is the time to respond to your Universal Credit