Thousands of people claiming Tax Credits will see a major change to their benefits before Christmas this year.

People claiming Tax Credits will be asked to move over to Universal Credit as part of the Department for Work and Pensions (DWP) "managed migration" process. The scheme is working to move people claiming older legacy-style benefits onto the newer Universal Credit.

This is a gradual process which the DWP expects to have fully completed by 2028 - it was temporarily paused during the coronavirus pandemic but restarted again in May Last year.

Households in three more areas of the country will receive letters - called "migration notices" - from December. These notices will give them a three-month deadline to start claiming Universal Credit. If you don’t claim within this time, your current benefits will stop.

From December, the DWP will send managed migration notices to people in the following areas:

  • Berkshire
  • Buckinghamshire
  • Oxfordshire

These are not the only areas which have received notices to move onto Universal Credit. Other regions have been targeted throughout the course of this year. Since April, Tax Credit claimants in the following regions have been contacted:

  • Avon
  • Cheshire
  • East London
  • Somerset
  • Gloucester
  • Greater Manchester
  • East Rising
  • North Yorkshire
  • Durham
  • East Anglia
  • Kent
  • North London
  • Tees Valley
  • Derbyshire
  • South London
  • Staffordshire
  • West Scotland
  • Cumbria
  • Dorset
  • East Scotland
  • Hampshire
  • Isle of Wight
  • Lancashire
  • Southwest Wales
  • Wiltshire
  • Southeast Wales
  • Central Scotland
  • Northern Ireland

Tax Credit claimants in Southwest Scotland will start to receive their migration notices from November.

There are six benefits which are classed as "legacy benefits" and are to be stopped and replaced by Universal Credit in the future. These benefits are:

  • Working Tax Credit
  • Child Tax Credit
  • Income-based Jobseeker’s Allowance (JSA)
  • Income Support
  • Income-related Employment and Support Allowance (ESA)
  • Housing Benefit (renting)

The DWP says all Tax Credit households across the UK will have been contacted about moving to Universal Credit by the end of next year, and the majority of those claiming legacy benefits are expected to have transitioned over by then too. However, those who claim income-related ESA and do not get Tax Credits have a slightly longer deadline and will be transferred across by 2028.

Once you make a Universal Credit claim, your old benefits will be stopped and you'll have to wait five weeks for your first Universal Credit payment to arrive. If you claim Tax Credits your entitlement will end as soon as you claim Universal Credit according to the Government website.

You’ll normally have to claim online, but you can also use the Universal Credit Migration Notice helpline on 0800 169 0328 if necessary - you can also ask your local Job Centre for help with your claim.

You don't have to wait until your migration letter to move onto Universal Credit - you can move over early if you wish. However, before doing this claimants are advised to use an independent calculator to see if they are going to be better off on Universal Credit.

The DWP claims 1.4million people (55%) will be better off on Universal Credit, and 900,000 (35%) would be worse off - around 300,000 benefit claimants will see no change.

The three benefit calculators recommended by the DWP include:

To use the calculators, you will need accurate information on your savings, income, existing benefits and outgoings. You cannot use the calculators if you are under 18, and they will not give accurate results if you're a prisoner, a student, not a British or Irish citizen, on strike, living outside the UK or living permanently in residential care or a nursing home.