Benefits claimants have been urged to look out for a letter landing on their doorstep ahead of the Universal Credit switchover

The Department for Work and Pensions (DWP) has issued a warning for people who claim tax credits as part of a huge Universal Credit shake-up.

It warned that tax credits are ending soon and issued advice on what to do if you claim this benefit.

The DWP posted a video to the platform, X – formerly known as Twitter captioned: 'Get ready for the #UniversalCredit switchover.'

• Full list of DWP payments for 2023 and 2024
• School closures latest: Schools ordered to shut over concrete fears
• Get paid to reduce energy usage this winter
• September DWP dates for benefits and cost of living payments

The video said: 'Tax credits are ending. Get ready for Universal Credit.

'You won't be moved automatically. Get ready for your Universal Credit switchover today.'

This comes after the Government previously announced everyone should be on Universal Credit by the end of 2024.

Universal Credit has already replaced tax credits for new claimants, but some are yet to switch over.

What are Tax Credits?

Tax credits are cash payments from the DWP to help working families. They include the following benefits:

Working tax credits – given to those registered as disabled or on a low income.

Child tax credits – given to adults who have children under 16 depending on them. You can only get child tax credits if you receive working tax credits.

The amount you get on these benefits depends on circumstances. You are entitled to a basic amount of working tax credits of up to £2,280 a year plus extras, such as having a disability where you could get up to £3,685 a year

Your child tax credits then depend on the number of children you have and their age.

What should I do if I claim Tax Credits?

If you claim Tax Credits, you will receive a letter called a Universal Credit Migration Notice from the DWP explaining what you need to do and when.

Most people will be asked to apply for Universal Credit but some aged 65 and over will be asked to apply for Pension Credit.

You will need to claim Universal Credit by the date in the letter or your benefits will stop completely. The date will be 3 months from when the letter was sent out.

The DWP stressed that you won’t be moved automatically, so it’s important to act quickly.

Before you apply for Universal Credit, make sure to renew your tax credits if you are asked to by HMRC and check that your Tax Credit information is up to date so you will receive the correct amount of Universal Credit.

How do I move to Universal Credit?

Once you have received your Universal Credit Migration Notice, you can apply for Universal Credit online using the government website.

You will have to fill in details about the following:

• Your housing and how much rent you pay
• Your earnings
• Any disability or health condition that affects your work
• How much you pay for childcare
• Your savings and any investments

To apply, you will have to provide an email address, bank account and phone number you have access to.

You will also need to prove your identity using identity documents such as a driver's license, passport, debit or credit card or payslip.

Usually, you cannot apply for Universal Credit if you have savings or capital of more than £16,000 but can make a claim if you are already receiving tax credits.

How does Universal Credit work?

Universal Credit is a payment to help people out with living costs and is available to those on a low income or who are out of work or cannot work.

It is a monthly payment for most, or twice a month for some people in Scotland.

The benefit is replacing six older benefits:

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

Most Tax Credits customers will be eligible for Universal Credit but the government advises speaking to an independent benefits adviser if you need help with switching.

How much will I get on Universal Credit?

Most Tax Credit claimants will receive the same amount on Universal Credit.

Many customers who move from tax credits to Universal Credit could actually be financially better off – for example, you could receive help with other costs including housing and certain bills.

If you're entitled to less on Universal Credit than you were on Tax Credits, you can receive a top-up called Transitional Protection.

You can use an independent benefits calculator to check how much you can get.

Related Stories

Universal Credit rule change set to affect 1.8 million benefit claimants

CHAT: Money advice

Warning issued to separated parents over unexpected Child Benefit bills