DWP Warning: The Shocking Reason Some Pensioners Will Lose Payments Starting April 5
The Department for Work and Pensions (DWP) has sent letters to some pensioners, informing them that their tax credit payments will stop starting in April. This change is part of the government’s plan to replace tax credits with Universal Credit or Pension Credit.
The DWP explained that some pensioners will be able to switch to these new systems, but others may no longer qualify for any payments after the change.
The group affected includes pensioners who currently receive tax credits in addition to their state pension. From April, tax credits will no longer be available, and pensioners will need to apply for Universal Credit or Pension Credit if they want to continue receiving financial support.
Most pensioners who used to claim tax credits have already made the switch to the new system. However, for those who haven’t yet switched, there are only a few more weeks of payments left. After the deadline, their tax credits will stop completely unless they apply for the new benefits. This means pensioners who rely on tax credits need to act quickly to avoid losing their payments.
For those struggling financially, Pension Credit might be a helpful option. Pension Credit not only increases the amount of money pensioners receive but also gives access to extra benefits, such as reduced bills, a free TV licence, and other financial support. These additional benefits can be worth up to £10,000 a year, making a big difference for those living in poverty.
Unfortunately, some pensioners have already faced financial difficulties this year. Many missed out on Winter Fuel Payments because these payments are now means-tested, meaning only those with lower incomes qualify. This has added to the stress for some older people who are trying to manage their finances.
The DWP has explained what will happen in their letter to pensioners. It says:
“Universal Credit is replacing tax credits. If you don’t apply by the deadline mentioned in the letter, your current tax credit payments will stop, even if you have recently renewed your claim.
“If you are of state pension age and currently claiming tax credits, the DWP or the Department for Communities in Northern Ireland will write to you and explain whether you need to apply for Universal Credit or Pension Credit. The decision will depend on your personal circumstances.
“Some people may not qualify for either Universal Credit or Pension Credit. In these cases, they will continue receiving tax credits until April 5, 2025, unless their circumstances change before then. After this date, all tax credit payments will stop entirely.”
If you’re a pensioner affected by this change, it’s important to read any letters from the DWP carefully and take action as soon as possible. Applying for the new benefits now can help ensure that there is no gap in your payments, and you don’t miss out on the financial support you may still be entitled to.
