Exact date DWP to ship ‘closure notices’ to 1000’s with many dropping money
Thousands of Tax Credit claimants are at risk of losing an essential cash top-up as they transition to the Universal Credit system. The Department for Work and Pensions (DWP) has been sending letters urging claimants to switch over, but a concerning number, around one third, are not responding.
This week, the DWP unveiled the date that “closure notices” will be sent to those combining Tax Credits with their State Pension. Ignoring these letters means losing out on the benefit altogether, something thousands of claimants have fallen afoul of in the last few months.
From September onwards, elderly claimants will start getting these letters, although some have already been delivered, guidance from local authorities indicates. Recipients have a three-month window after getting the letter to apply for the new benefit, Pension Credit.
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Consequently, pensioners who fail to switch to Pension Credit by December will forfeit this vital benefit, reports the Manchester Evening News.
Pension Credit plays a crucial role in ensuring that pensioners income meets a specified minimum threshold. For individuals on State Pension, it represents a potential weekly increase up to £218.15, while couples could see boosts to £332.95, safeguarding their financial wellbeing.
Chancellor Rachel Reeves announced last week her plans to boost the uptake of Pension Credit among eligible seniors, with the average top-up amounting to £3900 in annual cash aid. Claiming this assistance will become crucial for pensioners to receive financial help, as the Winter Fuel Payment has been scrapped for everyone except those claiming the benefit.
Those who might see a fall in their income due to the transition from Tax Credits to Pension Credits can receive a further top-up so that they do not experience a decline in their living standards.
The DWP explains: “Claimants who are sent a migration notice or closure notice and would otherwise see a reduction in benefit entitlement following the closure of their Tax Credit award may be considered for an additional amount to make up the shortfall. This is called a transitional additional amount.”
The majority of those of pension age will be sent a closure notice, informing them that they need to apply for Pension Credit. But some people, with certain life circumstances, will be sent a “migration notice” asking them to apply for Universal Credit instead.
Pension-age Tax Credit claimants will be asked to claim Universal Credit if, on the date DWP sends them a migration notice, they are:
- Not already claiming Pension Credit
- In receipt of Working Tax Credit or Working Tax Credit and Child Tax Credit
- Entitled to Working Tax Credit but only in receipt of Child Tax Credit (because their income has reduced their Working Tax Credit to nil)
- A member of a mixed-age couple in receipt of Working Tax Credit and/or Child Tax Credit (but see below for the exception to this rule)
Check your Pension Credit eligibility
The Department for Work and Pensions (DWP) is encouraging individuals to utilise the online Pension Credit calculator to determine if they, a relative, or a friend could be eligible for the additional support that Pension Credit provides. The online Pension Credit calculator on GOV.UK can be used to quickly check eligibility and get an estimate of potential benefits.
Alternatively, pensioners can reach out directly to the Pension Credit helpline to make a claim at 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday.
Expert assistance and advice are also available from:
