Four DWP and HMRC changes to watch out for in August – including those where action must be taken

Benefit claimants are being reminded of a number of changes coming in August 2024 - and some require action to be taken so that your payments are not stopped.

The changes include a tax credit deadline which needs immediate attention and a switch to Universal Credit. People receiving benefits can also expect earlier payments in August. This is due to the August bank holiday, reports BirminghamLive.

Here is a round-up of the key points to be aware of. The list includes payments made by the Department for Work and Pensions as well as HMRC.

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Tax credit deadline

Reminders have been sent to about 730,000 households about tax credit. Many people will need to let HMRC know of any changes which could affect their payments.

Working tax credits are worth £2,435 for the basic element and child tax credits are worth £3,455 for those on low incomes. There are also extra amounts, for example for people who are single parents or have disabilities.

Tax credits need to be renewed each year. Claimants should have received renewal packs in the post in June.

People have until July 31 to respond with information about their circumstances. This includes details about your income and your partner's income, if you have one.

This should be for the last tax year which runs from April 6, 2023, to April 5, 2024. Any changes to working hours, how much you pay for childcare, if a child leaves home or is over 16 and leaves education or training also need to be flagged up. You could be fined £300 if you do not tell HMRC about the change or face an even bigger fine if you give the wrong information.

Move to Universal Credit

Thousands of benefits claimants need to take action by the end of this month or risk having their payments stopped. The Government is moving two million people on old-style legacy benefits to Universal Credit through 'managed migration'.

Letters are being sent to those eligible telling them to make the move across. But you only have three months from the date the letter was sent to move to Universal Credit.

You could have your benefits stopped if you do not comply. Even if you decide to claim after the deadline, you can still lose out on transitional protection as you only get this if you claim by the deadline date.

About 120,000 households claiming tax credits with housing benefit started receiving their managed migration letters in April. There are also 110,000 income support claimants who have started receiving letters.

Managed migration notices were sent to those on only housing benefit in June, meaning they have until the end of September to move across. Anyone receiving Employment and Support Allowance (ESA) along with child tax credits started being asked to switch from July. Those claiming tax credits and over state pension age will be asked to apply for either Universal Credit or Pension Credit from next month.

Early benefit payments

Many people claiming benefits can expect to receive payments earlier than usual in August. This happens when the day payments are due to fall on is a bank holiday or the weekend.

So, payments are made on the first working day before that date. It means that people expecting payments on August 26 will actually be paid on August 23.

Anyone expecting payments on August 24 or 25 will also receive their money on August 23. The DWP and HMRC have confirmed the following benefits will be made early in August:

• Attendance allowance
• Carer's allowance
• Disability living allowance
• Income support
• Jobseeker's allowance
• Pension credit
• Personal independence payment (PIP)
• State pension
• Universal Credit
• Child benefit (paid by HMRC)
• Tax credits (paid by HMRC)

If you are expecting your benefit payment on August 23 and do not receive it, you should contact DWP. You can also submit a complaint if your payment is wrong.

Child benefit deadline

Parents have just weeks to take action or risk losing up to £1,331 in child benefit payments. Letters are being posted to parents of teenagers asking them for an update about their child's future education plans.

Child benefit is worth up to £1,331 a year for the first or only child and up to £881 a year for each additional child. Payments will automatically stop on August 31 or after your child has turned 16 - unless parents renew their claim if their child is continuing in education.

Parents of children who are continuing their education have until August 31 to tell HMRC or their payments will automatically stop. They can continue to receive the cash boost up until their child is 19 and enrolled in an apprenticeship programme or an education scheme.