Warning to Households on Tax Credits: Thousands See Payments Cut to Zero

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Government's Deadline Looming

As the government pushes to transition all legacy benefits claimants to Universal Credit by March 2025, over 31,000 individuals on tax credits have already had their benefits completely halted.

Managed Migration Process

The managed migration process, initiated in May last year following a successful pilot in July 2019, requires eligible households to switch from tax credits to Universal Credit or risk losing their benefits.

Failure to Act

Despite receiving migration notices, thousands of individuals have failed to make the switch, resulting in a total of £129.4 million in benefits being stopped, with the average household losing out on roughly £4,130 per year.

Call to Action

Ayla Ozmen from anti-poverty charity Z2K emphasized the importance of acting promptly upon receiving migration notices to avoid losing vital income.

Risk to Vulnerable Groups

Charities have raised concerns about the impact of managed migration on vulnerable individuals, urging the government to address flaws in the system to prevent those at risk from falling through the cracks.

Government's Response

The Department for Work and Pensions (DWP) highlighted the support available for claimants transitioning to Universal Credit, including extensions for those requiring extra assistance.

How to Get Help

Claimants can access support through benefit calculators, local Jobcentres, and services like Help to Claim from Citizen's Advice, available via phone or online.

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