Urgent DWP warning for Tax Credit claimants as payments set to end next April

The Department for Work and Pensions (DWP) has released new advice for eligible Tax Credit claimants over State Pension age who are set to receive a crucial letter in the post before the end of the current financial year, when the legacy benefit will cease. The letter will inform them whether they need to apply for Universal Credit or Pension Credit if they want to keep receiving financial support.

Those being asked to switch to Universal Credit will receive a Migration Notice, while those being asked to move to Pension Credit will get a Tax Credit Closure Notice.

The DWP confirmed that letters began being sent out last month and urged people not to disregard the 'deadline day' to make the claim by, which it said will be no less than three months from the date the notice is issued. The deadline day can be extended as long as the Tax Credit claimant requests one before the date is reached and there is a "good reason why they are not able to apply within the original deadline".

The Tax Credit award will end on the earlier of:

People already receiving Pension Credit will get a Tax Credit Closure Notice to tell them when their Tax Credit award is to end, which is usually two months from the date of issue. The DWP said a shorter notice period applies to these claimants as they will stay on Pension Credit and will not need to make a new claim, reports the Daily Record.

Those of pension age claiming Tax Credit will be prompted to apply for Universal Credit under certain conditions:

Normally, individuals who have reached State Pension age are not eligible for Universal Credit, unless they are part of a mixed-age couple.

Pension-age Tax Credit claimants will be encouraged to claim Pension Credit in specific circumstances:

If