The Department for Work and Pensions (DWP) has issued a stark warning that "no more payments" of Tax Credits will be made from April 6. The current financial year concludes on April 5, marking the end of the legacy benefit, and those who have not transitioned to Universal Credit or Pension Credit will miss out on further payments.

Tax Credits recipients were given final Migration Notices in October, informing them of a three-month window to apply for Universal Credit before their existing benefits are stopped. With the migration process not being automatic, individuals still receiving Tax Credits must act swiftly to avoid interruption in April.

Last year, over one million people began moving from legacy benefits to Universal Credit, according to the DWP. The guidance clearly states: "Tax credits end on April 5 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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The move is part of an ongoing effort to streamline financial support by merging various benefits like Tax Credits, Housing Benefit, Income Support, Jobseeker's Allowance, and Income-Related Employment and Support Allowance into one single system, reports the Daily Record.

Young mother worrying about paying the bills
Support through Tax Credits will end in just a matter of months

In a statement made in October regarding the final stage of migration for those on Tax Credits, Sir Stephen Timms, Minister for Social Security and Disability, stated: "Having three months to make a move may feel like a long time but life can often distract you elsewhere. For the best chance to secure your benefit entitlement don't delay with responding to your migration notice. We are committed to ensuring a smooth transition and customers will have the full support of DWP staff to help manage this change."

People receiving a Migration Notice or a Tax Credits Closure Notice could be eligible for a special payment to offset losses from their Tax Credit cessation, referred to as a transitional additional amount or transitional element when transitioning to Universal Credit.

For those deferring their State Pension or a non-State Pension upon receipt of their closure notice, they will not be considered as receiving this income during the initial 52 weeks of their Pension Credit award. The DWP clarified its position, stating: "As unclaimed pension income is ignored for Tax Credit purposes, this exception to the normal rules on the treatment of such notional income applies to these claimants to allow time to adjust to the new rules."

More information can be found on the dedicated Migration Notice page on GOV.UK here.