The Department for Work and Pensions (DWP) has shared an update on its plans to scrap the Tax Credit benefit.

The benefits department is currently working to move those claiming legacy benefits onto Universal Credit and this includes those claiming Tax Credits. There are currently two types of Tax Credits you can claim and these are Working Tax Credit and Child Tax Credit. Currently, around 730,000 people claim one or both of these benefits.

In documents detailing plans for the move to Universal Credit published by the department last month, it revealed that the DWP was removing the exception which allowed people to renew their Tax Credit claims and for claimants of one Tax Credit to claim the other one. This regulation - coming into force next year - will mean that there will be no Tax Credit claims whatsoever from April 6 2025.

The documents read: ". Regulation 8 is designed to prevent any renewal of existing Tax Credit claims or allow a person who is claiming one tax credit (for example Working Tax Credit), to claim the other Tax Credit (Child Tax Credit), and vice versa. This will also ensure there are no Tax Credits claims from April 2025.

"Regulation 6A of the Universal Credit (Transitional Provisions) Regulations 2014 states that a person cannot make a claim to a Tax Credit. However, exceptions are provided in Regulation 6A(6) for existing Tax Credit claimants to claim the other Tax Credit and (7) for existing Tax Credit claimants to apply to renew their awards. These exceptions are now removed – so there can be no more claims to a Tax Credit. This regulation does not come into force until 06/04/2025"

If you are claiming Tax Credits you need to renew your claim each year. The next - and final renewal - for the benefit is this July. After this, you will no longer be able to renew your benefit claim. You currently can't make any new claims for Tax Credits.

The DWP has been phasing out the legacy benefits for a few years and restarted the move again last year after briefly pausing during the Coronavirus pandemic. At the time of the managed migration restarting, around 2.6million people were still claiming old-style legacy benefits in the UK.

There are six benefits which are being scrapped and they are : Working Tax Credit, Child Tax Credit, Income-based Jobseeker’s Allowance (JSA), Income Support, Income-related Employment and Support Allowance (ESA), and Housing Benefit.

The DWP is conducting its move to Universal Credit in stages, and currently, it is focusing on those claiming Tax Credits and Housing Benefit. When it is your turn you will receive a migration notice in the post. and once you receive one, you will have three months to put in a claim for Universal Credit. If you don't, then your benefit payments will stop.

You can put in your claim online, or over the phone by calling the Universal Credit Migration Notice helpline on 0800 169 0328, or you can also ask your local Job Centre. Once you have made your claim, you will have to wait five weeks until your first Universal Credit payment and you will continue to receive it going forward - unless your circumstances change.