The Department for Work and Pensions has issued a warning to individuals receiving tax credits, stating that they have just two months before these payments will cease. In total, six benefits are being phased out and replaced by Universal Credit.

Those currently receiving Tax Credits, Housing Benefit, Income Support, Jobseeker's Allowance and Income-Related Employment and Support Allowance have been notified via letters from the DWP, instructing them to take necessary action. According to official figures, 594,000 families claiming tax credits in April 2024 will see their benefits halted from April 2025 if no action is taken.

Recipients of these letters must apply for Universal Credit instead. They have three months from the date on their migration notice to apply for Universal Credit to continue receiving benefits.

The DWP emphasises that individuals do not need to act until they receive their migration notice letter from the Department from Work and Pensions.

The Department for Work and Pensions (DWP) is calling on Tax Credit recipients to act swiftly in response to their Universal Credit migration notices to ensure the continuation of their benefits. The Low Incomes Tax Reform Group has cautioned: "Universal credit is gradually replacing working tax credit and child tax credit as well as some other means-tested benefits. If you have been claiming tax credits and start to claim universal credit in the same tax year, your tax credit award will stop. Your tax credits will also stop if you have been sent a migration notice asking you to claim universal credit by a deadline date and you do not do so."

With Tax Credits set to officially cease on April 5 this year, the DWP advises: "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."

Citizens Advice provides guidance on how to proceed upon receiving the letter: "You should claim Universal Credit by the deadline on the letter."

"Your old benefits will stop after the deadline. If you claim Universal Credit before the deadline, the DWP might pay you extra to stop you being worse off. This is called 'transitional protection'."

This transitional protection ensures that if the amount received from Universal Credit is less than the previous benefits, an additional sum will be provided to bridge the gap, reports Devon Live.

However, this additional support will be tapered off over time, leading to recipients eventually receiving the standard Universal Credit payment.

Sir Stephen Timms, minister for social security and disability, urged households to act swiftly in making the switch. He stated: "As we start the new year, families across the country are thinking about what's next."

"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 migration notice to continue receiving benefits."

Currently, the DWP is in the process of sending migration notices to those claiming Tax Credits, Income Support, income-based Jobseeker's Allowance, and Housing Benefit, which is expected to be completed by September 2024 and impacting roughly 440,000 individuals.

Meanwhile, households receiving Employment and Support Allowance can expect a notification by December 2025, with these notices having commenced in September of last year, impacting approximately 800,000 claimants in total. By the end of March 2026, all legacy benefits are slated to be discontinued.