Tax credits to be replaced by Universal Credit in Rochdale borough from June

Local tax credits claimants will be moved to the Universal Credit benefits system from June.

Currently, there are over 11,000 households in the Rochdale borough that still claim legacy benefits, including tax credits.

By the end of 2024, tax credits will be replaced by Universal Credit. Those who receive tax credits will receive a letter from the Department for Work and Pensions (DWP) telling them when to claim Universal Credit.

Universal Credit is a monthly payment to help with your living costs. You may be able to get it if you're on a low income, out of work or you cannot work.

Universal Credit replaces the following benefits:

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

In most cases, individuals will be better off following a move from legacy benefits to Universal Credit, says the Department for Work and Pensions.

If moving to Universal Credit would mean less money, most people will be entitled to a top-up payment known as ‘transitional protection’. This means your Universal Credit will be the same as your tax credits payment at the point of switching benefits.

Under tax credits, the government can pay up to 70% of childcare costs, but on Universal Credit this is up to 85%. Matched with this, you can have access to a Work Coach giving you extra support to access employment and training.

Affected claimants will receive letters notifying them of action to take.

It is important that people claim by the deadline shown in the letter to continue receiving financial support: your tax credits will end even if you decide not to claim Universal Credit.

However, there is no need to wait for the transfer letter, and you can apply to move to Universal Credit sooner, if it is right for you.

Alternatively, you can claim via the dedicated Universal Credit Migration Notice helpline for free on 0800 169 0328 or by visiting your local jobcentre. Claimants that require more time to claim can also call DWP for free on 0800 169 0328.

For claimants requiring additional support to complete their application support is available including through Citizens Advice Help to Claim.