Tax Credits are ending - you will need to act when you get your UC Migration notice

Updated: 30 January 2024

We are currently in the transition period from benefits to Universal Credit (UC), called Managed Migration. UC is replacing 6 benefits called ‘legacy benefits’. These include:

• Housing Benefit
• Income-related Employment and Support Allowance
• Income-based Jobseeker’s Allowance
• Child Tax Credits
• Working Tax Credits
• Income Support

Everyone of working age on the above benefits will have to move over to Universal Credit by the end of 2024/25, except for Employment and Support Allowance (ESA) claimants who will be moved over in around 2028/29.

However, you can move over sooner if you are better off on UC. If not, we advise you to wait for your UC Migration Notice Letter from the Government/DWP.

When you receive your UC Migration Notice you need to act - you will have three months to make a claim for UC, at the end of the three months your legacy benefits will stop.

You will need to consider within the three month period when it would be the best time for you to make the claim to ensure you protect and maximise your income.

Please seek advice to make sure you don’t lose out on what you are entitled to.

Tax Credits are ending first

Everyone of working age having to move over from Tax Credits to UC by the end of March/April 2024.

What is going to happen?

1. Don’t panic! In September 2023, HMRC sent out leaflets to all Tax Credit claimants saying their "Tax Credits are ending" which led people to think they must claim Universal Credit earlier than they need to – you need to wait until you get your UC Migration Notice from the Department for Works and Pensions (DWP).

2. Wait until you get your UC Migration Notice letter – when you get a Migration Notice' letter from the DWP, you should not ignore it. You must claim Universal Credit within the deadline on the letter (within three months) - but SEEK ADVICE first. Your other 'legacy benefits' will normally stop after three months. These letters could arrive at any time and we have been notified that St Helens and Liverpool will migrate from 22 January 2024 and Cheshire/Warrington from February 2024.

3. Seek advice before changing to Universal Credit:

• Some people/households will be better off when you move across, but some people will not. Be sure to get advice before you make the claim as you cannot go back once you have moved across.
• If you are in one of these groups – self-employed, people with savings, have childcare costs, or a part-time worker – please don't assume that you won't qualify for UC, please seek advice to ensure that you can maximise your income.

It is important to complete your Tax Credit renewal before making the change to UC.

Don’t panic, wait until you get your UC Migration notice letter and SEEK ADVICE before making the change to UC.

Find out more about moving to UC, where to see advice, FAQs and accessing support