The DWP is in the process of migrating legacy benefits over to the one-for-all Universal Credit system, with one of those changes removing Tax Credits for older people Get the latest money news from the Daily Record with our weekly newsletter We have more newsletters Get the latest money news from the Daily Record with our weekly newsletter We have more newsletters As the Universal Credit system continues to absorb legacy benefits, the Department for Work and Pensions (DWP) has been posting letters to a plethora of Tax Credit recipients, urging them to apply for the reformed benefit. However, alarmingly, around a third who have received this crucial communication are not responding, thus forfeiting an important income supplement. The DWP recently disclosed when it would issue "closure notices" to individuals getting Tax Credits in addition to their State Pension, with the warning that failing to reply will result in losing the benefit altogether.
Guidance given to local councils indicates that senior citizens can anticipate these notifications from September, although some have already begun to arrive. State Pension recipients are allowed a three-month period starting from when they receive the DWP letter to claim under the new Tax Credits mode, which is being rolled into Universal Credit. Consequently, any failure to switch to Pension Credit by December will result in the loss of this vital support.
READ MORE: New DWP update for older people on Tax Credits ahead of payments .