The Department for Work and Pensions (DWP) has confirmed that Tax Credits will end on April 5, 2025, as part of the government’s plan to transition all claimants from legacy benefits to Universal Credit.
Many people still have not applied for Universal Credit despite receiving urgent migration notice letters from the DWP. If you are receiving Working Tax Credit or Child Tax Credit, it is crucial to act now to avoid losing your payments.
Why Must You Move to Universal Credit?
1. Your Payments Will Stop in April 2025
- If you do not apply for Universal Credit, your Tax Credits will stop on April 5, 2025.
- You will need to start a new claim, which could take time, leaving you without financial support.
2. You May Qualify for Transitional Protection Payments
- If your Universal Credit entitlement is lower than your current Tax Credits, you may be eligible for transitional protection.
- This means you could receive a top-up payment to match your previous benefit amount.
Example:
- If you currently receive £600 in Tax Credits but are only eligible for £400 under Universal Credit, transitional protection would top up the difference, so you still receive £600.
- This protection can last for years but may be lost if your circumstances significantly change (e.g., starting a better-paying job, moving in with a partner, or reaching State Pension age).
Many people are unaware of this benefit—70% of claimants in a recent survey did not know about transitional protection.
What Happens If You Do Nothing?
- Your Tax Credits will automatically stop in April 2025.
- If you do not apply for Universal Credit, you will lose out on transitional protection.
- You can apply later, but you will only receive the standard Universal Credit amount, which may be lower than your current payments.
This could mean losing out on thousands of pounds in additional financial support.
What Is Managed Migration?
The DWP’s managed migration programme aims to move all legacy benefit claimants to Universal Credit by March 2026.
Which Benefits Are Being Replaced?
The following legacy benefits will be replaced by Universal Credit:
- Child Tax Credits
- Working Tax Credits
- Housing Benefit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
What Should You Do If You Receive a Migration Notice?
- You must apply for Universal Credit within three months of receiving the migration notice.
- The DWP will send notices to all affected claimants by the end of 2024.
- Your letter will tell you your deadline for applying.
Many people have not responded to their migration notice, putting them at risk of losing their benefits.
How to Apply for Universal Credit?
You can apply for Universal Credit online at gov.uk/universal-credit or seek assistance through the Universal Credit Migration Notice Helpline.
Universal Credit Migration Helpline
- Phone Number: 0800 169 0328
- Opening Hours: Monday to Friday, 8:00 AM – 6:00 PM
If you need help with your application or migration process, contact the helpline as soon as possible.
Key Deadlines and Important Dates
| Event | Date |
|---|---|
| Tax Credits End | April 5, 2025 |
| Final Migration Notices Sent | By End of 2024 |
| Universal Credit Transition Completion | March 2026 |
Why You Should Act Now
- Ensure you continue receiving payments after April 2025.
- Claim transitional protection if your Universal Credit entitlement is lower.
- Avoid delays in processing your Universal Credit claim.
With thousands of people still unregistered, the deadline is fast approaching. Apply now to avoid losing financial support.
For more details, visit gov.uk/universal-credit or call 0800 169 0328.
The end of Tax Credits in April 2025 marks a significant change in the UK’s benefits system. If you are receiving Tax Credits, you must apply for Universal Credit as soon as you receive your migration notice.
Failing to apply means losing your benefits, and you may miss out on thousands of pounds in transitional protection. Do not wait—check your migration letter and apply today.
Source: Link
FAQ’s
When do Tax Credits end?
Tax Credits will end on April 5, 2025. Claimants must apply for Universal Credit before this date to continue receiving benefits.
What happens if I do not apply for Universal Credit?
If you do not apply, your Tax Credits will stop. You can apply later, but you will not receive transitional protection payments.
What is transitional protection?
Transitional protection ensures that if your Universal Credit entitlement is lower than your current benefits, you receive a top-up payment to maintain your income level.
How do I apply for Universal Credit?
You can apply online at gov.uk/universal-credit or call the Universal Credit Migration Helpline at 0800 169 0328 for assistance.
Which benefits are being replaced by Universal Credit?
Legacy benefits being replaced include Child Tax Credits, Working Tax Credits, Housing Benefit, Income-based JSA, Income-related ESA, and Income Support.
What is the deadline to apply for Universal Credit?
You must apply within three months of receiving your migration notice. All notices will be sent by the end of 2024.
Where can I get help with my Universal Credit application?
You can call the Universal Credit Migration Helpline at 0800 169 0328, open Monday to Friday from 8 AM to 6 PM.
