Thousands of parents face losing money as essential benefits cut

A benefit claimed by hundreds of thousands of people in the UK is to be completely scrapped next year.

The Department for Work and Pensions (DWP) has confirmed that 600,000 people will need to move to Universal Credit in the first months of 2025, under penalty of losing benefits completely.

And it is estimated that this warning will affect 600,000 people.

Warning to parents

The plan to eliminate this benefit is part of the government’s plan managed migration scheme – where applicants are transferred to Universal Credit.

This newer type benefit replaces traditional benefits such as Employment and Support Allowance (ESA) and income-based Jobseeker’s Allowance.

But managed migration also phases out tax credits, including Child tax credits – a key benefit for parents.

The DWP is now urging anyone claiming this payment and receiving a letter from the department to respond “in order to continue receiving benefits”.

The government confirms:

“The tax credits end in April 2025 and customers must respond to their migration notices to continue receiving the benefits.

“Those affected have three months from the date of their migration notice to apply for Universal Credit.”

Who will be affected?

Under the latest wave of migrations to Universal Credit, households claiming benefits such as child tax credits will have to move to the new benefit or risk losing their cash support altogether.

The DWP confirms that legacy benefits “are being phased out to consolidate government financial support in one place” but that “what is important is that the majority of people will not be worse off under the universal credit”.

The full list of services concerned is as follows:

• Tax credits – including the child tax credit
• Housing allowance
• Income support
• Jobseeker’s Allowance
• Income-related employment and support allowance

Anyone who needs to be transferred will receive a letter from the DWP telling them what to do next.

Some households have already been transferred and everyone affected should benefit from the new allowance by April 2025, four years earlier than expected in some cases.

What should I do if I receive a letter?

The DWP requires anyone receiving tax credits to respond to their Universal Credit migration notices within three months of receiving them.

If you don’t do this, the DWP adds, you could end up losing government support altogether.

Anyone affected will receive a ‘migration notice’ letter from the DWP to apply for Universal Credit and you will not need to take any action until you receive this letter.

But you must act immediately as soon as you receive the letter.

Sir Stephen Timms, Minister for Social Security and Disability, said:

“Having three months to move may seem like a long time, but life can often distract you elsewhere. To have the best chance of securing your right to benefits, do not delay in 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 them manage this change. »

Anyone needing help is encouraged to contact the DWP before the deadline.