DWP to Notify Tax Credit Claimants Over State Pension Age About Benefit Changes
Pension Credit Recipients to Receive Simplified Transition Notice as Tax Credit System Ends
According to MIRROR, the Department for Work and Pensions (DWP) has announced significant updates for Tax Credit claimants who are over State Pension age. By the end of the current financial year these claimants will receive important letters informing them whether they need to apply for Universal Credit or Pension Credit. This change comes as the Tax Credit system is being phased out. Claimants will either get a Migration Notice which will direct them to Universal Credit or a Tax Credit Closure Notice if they need to switch to Pension Credit. It is crucial that recipients respond by the deadline mentioned in their letter usually within three months to ensure they continue receiving financial support.
For those already receiving Pension Credit the process will be a bit more straightforward. They will receive a Tax Credit Closure Notice specifying when their Tax Credit will end typically two months after the notice is issued. Since they are already on Pension Credit there is no need for them to make a new claim. However mixed-age couples or those with specific Tax Credit awards may be required to switch benefits based on their situation. Couples with Tax Credit awards for Child Tax Credit only will transition to Pension Credit while those with Working Tax Credit or mixed Tax Credit awards will move to Universal Credit.
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1.4 Million Tax Credit Claimants Over State Pension Age: 3-Month Deadline to Switch to Universal Credit or Pension Credit! (PHOTO: The Sun)
Transitional Protection and Support Available for Tax Credit Claimants Switching Benefits
The DWP has introduced transitional protection to assist individuals during this changeover. Those moving to Universal Credit might receive a transitional element to help cover any loss in benefits. Furthermore if individuals delay claiming their State Pension or non-State Pension their unclaimed pension income will not be counted for up to a year. This provision helps them adjust to the new benefit rules. Claimants seeking detailed guidance on how to proceed or secure transitional protection are advised to contact the nationwide Citizens Advice network for assistance.
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