DWP to send 'closure notices' to thousands claiming axed benefit with many failing to reply

As part of the migration of legacy benefits over to the one-for-all Universal Credit system, the Department for Work and Pensions (DWP) has been sending letters to thousands of Tax Credit claimants telling them to apply for the new-style benefit - but around a third of those receiving the letter are not replying and losing an essential cash top-up.

This week, the DWP confirmed the date it would be sending "closure notices" to people who receive Tax Credits alongside their State Pension, who will need to respond to the letter or lose the benefit entirely. According to advice handed to local authorities, older people can expect to start receiving these letters from September, though some groups have already started receiving them.

Anyone who is claiming their State Pension will have three months from receiving the letter to apply for the new form of Tax Credits, which are being incorporated into the Universal Credit system. This means that anyone who has not migrated to Pension Credit by December will lose the essential benefit.

READ MORE: DWP state pension increase falls short by £11.50 a month as earnings growth dips

Pension Credit is designed to top-up pensioners' incomes to a minimum level. For single State Pension claimants, this can boost your income to £218.15 per week, with couples receiving top-ups to £332.95 over the same period.

Last week, Chancellor Rachel Reeves stated her intent to increase the take up of Pension Credit among eligible older people, with the average top-up equalling £3900 in cash assistance per year. Claiming the help will become integral to receiving financial assistance for pensioners, as the Winter Fuel Payment has been axed for everyone except those claiming the benefit.

Those who