Changes from this summer if you are of pension age and you get Tax Credits
Changes to the benefit system largely affect people of working age, but look out for this change if you are of pension age and you currently receive Tax Credits.
From July 2024 onwards, Tax Credits claimants will receive a letter that states their claim is coming to an end. The letter will invite them to claim another benefit. Depending on individual circumstances, this will be either Pension Credit or Universal Credit.
If you receive a letter and are unsure what to do, contact us for advice.
'Move to Universal Credit' applies to more people from April 2024
Since 1 August 2023, people in Derbyshire that claim Tax Credits have been receiving a letter called a 'Migration Notice', telling them to claim Universal Credit instead. This is part of the DWP's 'Move to Universal Credit' plan, to move most claimants from 'legacy benefits' to Universal Credit by March 2025.
Legacy benefits are: Tax Credits, Income Support, Income-Based Jobseeker's Allowance (JSA), Income-Related Employment and Support Allowance (ESA) and Housing Benefit. 'Move to Universal Credit' does not affect people that only receive other benefits.
Making a claim for Universal Credit after receiving a Migration Notice means that you should not be worse off than you were on your legacy benefits. This is because you should qualify for 'transitional protection' to keep your income at least the same. This protection reduces over time and can stop if your circumstances change, for instance, you were single but your become part of a couple, or you were part of a couple, but you separate.
Timeline in Derbyshire
People that receive a legacy benefit can expect to receive their Migration Notice telling them to claim Universal Credit instead from these dates:
- started August 2023: Tax Credits only
- From April to June 2024: Income Support only, Income Support and Housing Benefit, Tax Credits with Housing Benefit, Housing Benefit only
- From July to September 2024: Income-Related ESA and Child Tax Credit with Housing Benefit
- From August 2024: Pensioners receiving Tax Credits
- From September 2024: Income-Based JSA only, Income-Based JSA and Housing Benefit
Also from September 2024, people receiving Income-Related ESA only, or Income-Related ESA and Housing Benefit, were set to receive their migration notice after April 2028, however, on 19 April 2024, Rishi Sunak announced that everyone receiving Income-Related ESA will now receive theirs by the end of 2025.
What you should do if you receive a legacy benefit
If you receive a legacy benefit:
- only make a claim for Universal Credit once you have received a letter which says it is a ‘Migration Notice’. This means that you should not be worse off on Universal Credit. If you do not claim right away, you'll receive a reminder letter, but no further reminders will be issued
- if you receive a leaflet from DWP explaining the process, do not claim until you get the Migration Notice
- when you receive your Migration Notice, you have 3 months to make your claim: if you need advice you can contact us, Citizens Advice, Derbyshire Unemployed Workers’ Centre - or contact the DWP helpline given in the letter, or ask to see someone at your local Jobcentre
- if you claim before you receive the Migration Notice, you will receive less ‘transitional protection’ – or none at all. Seek advice to see when you should make your claim
- some people may be better off on Universal Credit now, in which case, you may wish to claim before receiving your Migration Notice. Some people may have to make a claim early because of a change to their circumstances. Contact us for a benefit check
See our contact details for further help.
The best time to seek advice
The best time to seek advice is:
- if you're claiming benefits and you experience a change of circumstances, for example, you separate from a partner, or move to a different local authority area
- you receive your Migration Notice or a letter from the DWP telling you about the move to Universal Credit and want to know more
- if you simply want to know if you might be better off claim Universal Credit now or waiting to be migrated with transitional protection
Important - please don't ignore your Migration Notice
If you don't claim in time, your existing benefits will stop. You can still claim Universal Credit at any time after this, but you will not qualify for 'transitional protection'.
This is the biggest change in social security for many years - if in any doubt, seek advice now, or as soon as you can after you get your migration notice.
If you have more than £16,000 in savings
Normally, you cannot get Universal Credit or most legacy benefits if you have more than £16,000 in savings, but there is an exception to this. People that receive Tax Credits only, that have over £16,000 in savings, can receive Universal Credit for up to a year, but after that, their Universal Credit will stop if they still have savings over this limit.