Tax Credits claimants to get vital DWP letter from April – what to look out for | Personal Finance | Finance

People who receive Tax Credits are being warned to look out for a letter that will be arriving from next month about their migration to Universal Credit. The DWP said most people will be better off under the new system.

The migration to Universal Credit is being expanded from next month with people to get a letter known as a Migration Notice urging them to claim the new benefit.

The DWP has warned people could lose their current benefit entitlements if they fail to act after receiving a letter.

Migration Notices are due to be issued to all Tax Credit claimants over the next two years. A person will naturally move to Universal Credit if they have a change in their circumstances.

If a person’s entitlement is less under the new system, in most cases a person will receive a top-up payment known as Transitional Protection.

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Guy Opperman, minister for employment, said: “Universal Credit has proven itself as a benefits system fit for the modern age, having dealt with the unprecedented demand of 3.7 million claims during the pandemic.

“The movement of those on legacy benefits to Universal Credit will ensure we can continue to provide the best level of support to benefit recipients through an effective and streamlined system.

“This Government remains committed to supporting the most vulnerable in society. I want to encourage all those who receive their migration notices to take action to ensure that they continue to receive the benefits they are entitled to.”

The movement of claimants to Universal Credit was paused during the COVID-19 pandemic after record demand with new benefits applications.

Claimants can get extra payments if they have children. Most claimants only get an additional amount for up to two children.

Those whose children were born before April 6, 2017, or who were claiming for three or more children before that date can get payments for additional children.

This is how these additional payments will increase from April:

• First child payments
• First child payments to parents with children born before April 6, 2017, will increase to £315 (up from £290)
• Payments for children born after April 2017 and second children/additional children will increase to £269.58 (up from £244.58).

Parents who have disabled children are also entitled to further payments to help with costs. The increased rates include:

• The lower rate for parents of disabled children will increase to £146.31 (up from £132.89)
• The higher rate for severely disabled children will increase to £456.89 (up from £414.88).

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