Universal credit: Managed migration Notices and letters
Tax credits ended on 5 April 2025 and there are no live tax credit awards after that date.
As tax credit claimants were selected for the formal managed migration exercise, there are a number of letters and notices they should have received.
For those moving from tax credits, some of the letters would be from HMRC and some from DWP. Where people are or were claiming more than one of the legacy benefits, they may have received different letters in respect of their housing benefit and other benefits. Here we focus on the main letters and notices associated with a move from tax credits.
At each stage, DWP and or HMRC may communicate with claimants to check progress, offer support, remind claimants to take action and/or request additional information in connection with the part of the process they are dealing with.
Migration notice
This is a formal notice issued by DWP under the migration legislation. The legislation gives the Secretary of State a discretion to issue a migration notice at any time to a person entitled to an award of an existing (legacy) benefit. The notice informs a claimant that all awards of any existing legacy benefits to which they are entitled are to terminate and that they need to make a claim for universal credit by the deadline day specified in the notice.
Under the legislation, migration notices must be issued to both members of a couple (or all members of a polygamous marriage).
Generally, the deadline date in the notice must not be within the period of three months starting with the day on which the notice is issued but because tax credits are ending from 6 April 2025, a change in the rules means that where a tax credit claimant was issued with a migration notice on or after 27 January 2025 and before 6 April 2025, the deadline day may be 6 April 2025 (regardless of the former 3-month timeframe). The legislation also contains a provision to allow for extension of the deadline – however this is at the DWP’s discretion. The deadline can be changed to a later date either on the DWP’s own initiative or if the claimant (notified person) requests a change before the deadline day where there is ‘a good reason to do so’. Once a decision has been made to change the deadline line, the DWP must inform the notified person(s) of the new deadline day. Extensions were unlikely to be granted beyond 5 April 2025 for existing tax credit claimants.
Migration notices can also be cancelled by the DWP where:
- It has been issued in error;
- In any circumstances where DWP considers it necessary to do so in the interests of the person, or any class of person, or to safeguard the efficient administration of universal credit.
Existing legacy benefits terminate if no claim for universal credit is made by the deadline (or extended deadline if agreed). In the case of tax credits, they terminate the day before the deadline day. Other legacy benefits have a run-on period which means housing benefit, income support, income-based jobseeker’s allowance or income-related employment and support allowance terminate on the last day of the period of two weeks beginning with the deadline day. An award of housing benefit which someone is entitled to in respect of specified or temporary accommodation does not terminate under this legislation.
If a claimant fails to make a UC claim by their deadline date, but subsequently makes a UC claim on or before what would be the last day of their first assessment period in relation to an award commencing on the deadline day, the UC award will commence from the deadline day.
Migration notices after 5 April 2025
As there are no live awards of tax credits after 5 April 2025, we understand that it is not possible for HMRC/DWP to issue migration notices or tax credit closure notices after that date.
Where a person has appealed a decision not to award tax credits and the appeal is decided after 5 April 2025 and overturns the decision, so that tax credits are awarded from a date before 5 April 2025, they will not be issued with a migration notice or tax credits closure notice and cannot be included in the managed migration process. Claimants in this situation will simply have their tax credits awarded in line with the appeal outcome up to and including 5 April 2025 at the latest and will then need to make their own claim for ongoing support through universal credit or pension credit. Transitional protection will not be available to them.
Universal credit indicative amount
DWP may contact the claimant to ask for additional information to help them determine the universal credit indicative amount. This may not be necessary in all cases and is an option rather than a legal requirement.
Tax credits In-year finalisation review notice
Once the person submits their universal credit claim, that sends a trigger to HMRC stop tax credits. At this point, HMRC commence in-year finalisation and send an initial in-year finalisation notice.
Tax credits In-year finalisation award notice
Once the person has completed their in-year finalisation review, HMRC will process the information and issue an in-year final award notice.
Tax credits in-year finalisation overpayment notice
If the in-year finalised decision results in an overpayment of tax credits, HMRC will send an overpayment notice. Recovery of the overpayment is likely to be managed by deductions from the new universal credit award but direct recovery may well remain an option, if preferred by the claimant.
Tax credit claimants may receive several overpayment notices and notices of debts transferred to universal credit.
Universal credit award
We understand that in most cases, universal credit entitlement decisions are displayed via the universal credit on-line account.
Tax credits closure notice
Rules introduced with effect from 8 June 2024 introduce tax credits closure notices.
They were issued to existing tax credit claimants who had reached their state pension credit age and who were not migrating to universal credit but would be expected to claim ongoing support though pension credit.
Last reviewed/updated 21 June 2024