The Department for Work and Pensions (DWP) is currently working to scrap six legacy benefits and the first to be axed is Tax Credits which will be closed for good in April this year
Benefit claimants are being urged to act ahead of a major deadline coming in April this year.
The Department for Work and Pensions (DWP) is currently working to scrap six legacy benefits and move everyone onto Universal Credit. These benefits include: Working Tax Credit, Child Tax Credit, Income-based Jobseeker’s Allowance (JSA), Income support, Housing Benefit, and Income related Employment Support Allowance (ESA). The first legacy benefit to be axed is Tax Credits which will be closed for good in April this year.
Those claiming are being moved over through its Managed Migration programme. As part of the process, households claiming legacy benefits are being sent letters called “migration notices” through the post. Under the plan, all Tax Credit claimants should have received a Migration Notice by the end of last year. Once you have received a managed migration notice, you have three months to claim Universal Credit. If you miss this deadline, your benefits will be stopped.
If you have not yet acted or have not received a letter, then you do not have much time left to make a claim, as you will not receive Tax Credit payments from April. Once you’ve made a claim for Universal Credit, it usually takes up to five weeks for your first Universal Credit payment to arrive. However, it is important to note that once you have made an application for Universal Credit, your Tax Credit payments will stop.
According to the latest DWP figures, 355,940 individuals who were sent migration notices did not claim Universal Credit and had their legacy benefit claims closed. The DWP website warned: “Tax Credits are closing on 5 April 2025, and customers must respond to their migration notices by their deadline date to continue to receive financial support from the Government.”
If you claim Universal Credit by the deadline or within one month of the deadline, then you may get an extra payment – which is called a transitional element. This is intended to ensure that you are not worse off on Universal Credit compared to Tax Credits, at the point of transfer, with circumstances unchanged. This amount depends on your current Tax Credits award being as accurate as possible, and HMRC may contact some claimants directly to carry out a “pre-migration check”.
The transitional protection lasts until there is no difference between the amount awarded under Universal Credit and what you received before under legacy benefits. The DWP is working to send migration notices to all those claiming legacy benefits by the end of this year. This means hundreds of thousands of managed migration notices will be sent over the next nine months. The benefits department is working to completely phase out all legacy benefits by the end of March 2026.
