State pensioners are urged to look out for letters in their post or risk losing £1,000s.
The DWP/HMRC are formally inviting claimants from tax credits (and other legacy benefits) to move across to Universal Credit as part of the managed migration process.
State pensioners are warned that if they do not act, they could risk losing their state benefits.
Claimants will not automatically be transferred over to Universal Credit but they will be issued with a migration notice and will need to actively make the claim.
Over two million people will take part in the managed migration and be moved across from legacy benefits to Universal Credit this year.
People above state pension age - which is currently 66 - who have been tax credit recipients are being warned that their letters should arrive in August.
Over two million people will take part in the managed migration and be moved across from legacy benefits to Universal Credit this year
PAOnce the letters have been received, claimants have three months to act or their benefits will stop, and they could end up having to repay some of the credits they received this year.
However, the Government has also warned that it is important that people do not do anything until they receive their Universal Credit Migration Notice letter.
If individuals put a Pension Credit or Universal Credit application in before then, they could miss out on the transitional protections.
The notice will tell people which benefit they're moving across and gives them a deadline date by which to apply.
The DWP has said that 184,120 individuals lost their benefits after failing to act on migration notices received between July 2022 and March 2024.
Those under the state pension age will be moved to Universal Credit and should have already received their letter.
Those over state pension age will move across to Pension Credit.
Mixed-age couples - where one of them is over state pension age, and the other is under it - should both be able to claim Universal Credit.
Pension Credit is a benefit which gives people extra money to help with their living costs if they’re on a low income in retirement.
The average weekly amount of Pension Credit is around £75 – or more than £3,900 a year – according to Government figures.
If someone claims the main part of Pension Credit, they can get discounts on other bills such as the warm home discount scheme, support for mortgage interest, council tax discounts, free TV licences once over 75, and help with NHS costs. These reductions and discounts can save someone thousands of pounds a year.
Pension Credit tops up:
- their weekly income to £218.15 if they’re single
- their joint weekly income to £332.95 if they have a partner