The Department for Work and Pensions (DWP) has issued a warning to individuals on tax credits, stating they have just two months before their payments will cease. In total, six benefits are being phased out and replaced by .

Letters have been sent by the DWP to those receiving Tax Credits, Housing Benefit, Income Support, Jobseeker's Allowance and Income-Related Employment and Support Allowance, instructing them to take necessary action. According to official figures, 594,000 families claiming tax credits in April 2024 will see their benefits halted from April 2025 if no action is taken.

Those who receive these letters need to apply for Universal Credit instead. Affected individuals have three months from the date on their migration notice to apply for Universal Credit to continue receiving benefits.

The DWP emphasises that people do not need to act until they receive their migration notice letter from the Department from Work and Pensions.

The DWP is calling on Tax Credit recipients to act swiftly in response to their Universal Credit migration notices to ensure they continue receiving benefits. The Low Incomes Tax Reform Group has cautioned: "Universal credit is gradually replacing working tax credit and child tax credit as well as some other means-tested benefits. If you have been claiming tax credits and start to claim universal credit in the same tax year, your tax credit award will stop. Your tax credits will also stop if you have been sent a migration notice asking you to claim universal credit by a deadline date and you do not do so," reports .

With Tax Credits set to terminate on April 5 this year, the DWP has made it clear: "Tax credits end on 5 April 2025. No more payments will be made after that. You'll be sent a letter if you are eligible for Universal Credit or Pension Credit instead."

Citizens Advice has offered guidance for those who receive the letter, advising: "You should claim Universal Credit by the deadline on the letter."

They further explain the consequences of missing the deadline: "Your old benefits will stop after the deadline. If you claim Universal Credit before the deadline, the DWP might pay you extra to stop you being worse off. This is called 'transitional protection'."

"This means that if you'd get less on Universal Credit than your old benefits, you'll get an extra amount to makeup the difference. The DWP will reduce the extra amount over time - so you'll eventually just get what you normally would on Universal Credit."

Sir Stephen Timms, minister for social security and disability, cautioned households against delaying the change. He stated: "As we start the new year, families across the country are thinking about what's next.

"With this in mind, I encourage everyone who has received a migration notice to act as quickly as possible and move onto Universal Credit. We know how quickly time can pass when you're busy - and with just three months to go until Tax Credits close on the 5th of April - now is the time to respond to your Universal Credit migration notice to continue receiving benefits."

The DWP aimed to send migration notices to all households claiming Tax Credits, Income Support, income-based JSA, and Housing Benefit by September 2024, approximately 440,000 individuals.

Households claiming ESA should receive a letter by December 2025. The DWP began sending these letters to claimants in the area last September - around 800,000 in total - in September last year.

All existing benefits are set to be phased out by the end of March 2026.