The Department for Work and Pensions (DWP) is set to eliminate six legacy benefits, starting with Tax Credits, which will end on April 5, 2025. This move is part of a £6 billion welfare reform, affecting hundreds of thousands of claimants who must switch to Universal Credit (UC) or Pension Credit to continue receiving financial support.
Which Benefits Are Being Scrapped?
The following six legacy benefits will be phased out:
- Working Tax Credit
- Child Tax Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Housing Benefit
- Income-related Employment and Support Allowance (ESA)
First to be axed: Tax Credits, which will officially close on April 5, 2025.
What Happens If You Receive Tax Credits?
- DWP has sent out Migration Notices to people on Tax Credits, informing them of the deadline to switch to Universal Credit (UC) or Pension Credit.
- If you do not apply for Universal Credit before your deadline, your tax credits will stop.
- Some tax credit claimants will not be eligible for Universal Credit or Pension Credit and will continue receiving payments until April 5, 2025, unless their circumstances change.
- After April 5, 2025, all tax credit payments will end permanently.
Important: If you receive a Migration Notice, you must act before your deadline to avoid losing financial support.
Who Needs to Apply for Universal Credit?
You Need to Apply for Universal Credit If:
- You receive Tax Credits (Working or Child Tax Credit).
- You are below State Pension age and receive one of the six legacy benefits.
- You receive both Tax Credits and Housing Benefit.
You May Need to Apply for Pension Credit If:
You are State Pension age or older.
Note: Some claimants will not qualify for either Universal Credit or Pension Credit, meaning their tax credit payments will stop permanently after April 5, 2025.
How to Apply for Universal Credit
Wait for your Migration Notice:
- The DWP will send you a letter explaining your next steps.
Apply before your deadline:
- You must claim Universal Credit by the date given in your Migration Notice.
Check your entitlement:
- Universal Credit payments may be different from your tax credits.
Warning: If you switch to Universal Credit before receiving your Migration Notice, you could receive less money than you currently get on tax credits.
What If You Don’t Apply in Time?
- If you miss your Migration Notice deadline, your tax credits will stop completely.
- If you fail to claim Universal Credit before April 5, 2025, you will lose access to financial support unless you qualify for Pension Credit.
DWP Helpline for Tax Credit Queries: 0800 731 0469
Will You Get a Tax Credit Payment in 2025?
- Some 2024–2025 tax credit notices may show predicted payments for 2025–2026, but these should be ignored.
- No further tax credit payments will be made after April 5, 2025.
The DWP is phasing out Tax Credits and other legacy benefits, meaning claimants must apply for Universal Credit or Pension Credit before their deadline to continue receiving financial aid.
If you receive a Migration Notice, act immediately to avoid losing payments.
Key Takeaways:
- Tax Credits end on April 5, 2025.
- You must apply for Universal Credit or Pension Credit if eligible.
- Miss the deadline? Your payments will stop permanently.
For more details, visit GOV.UK or call the DWP helpline at 0800 731 0469.
FAQ’s
When will Tax Credits end?
Tax Credits will be permanently scrapped on April 5, 2025. Claimants must switch to Universal Credit or Pension Credit before their Migration Notice deadline.
What happens if I don’t apply for Universal Credit in time?
If you miss your Migration Notice deadline, your Tax Credits will stop, and you may lose access to financial support.
Who needs to apply for Universal Credit?
Anyone below State Pension age currently receiving Tax Credits, Housing Benefit, or other legacy benefits must apply for Universal Credit.
Can pensioners still receive financial support?
Yes, State Pension-age claimants may be eligible for Pension Credit instead of Universal Credit.
What if I apply for Universal Credit before getting a Migration Notice?
Your Universal Credit entitlement may be lower than your current Tax Credits, so it’s best to wait for your Migration Notice before switching.
Will any tax credit payments be made after April 2025?
No, all tax credit payments will end permanently after April 5, 2025.
What other benefits are being scrapped?
Income-based Jobseeker’s Allowance (JSA), Income Support, Housing Benefit, and Income-related Employment Support Allowance (ESA) are also being phased out.
Where can I check my Universal Credit eligibility?
You can check eligibility and apply for Universal Credit at GOV.UK or by calling the DWP helpline at 0800 731 0469.
What if I don’t qualify for Universal Credit or Pension Credit?
A small number of claimants may not be eligible for either benefit, meaning their payments will stop completely after April 5, 2025.
Where can I get more information?
Visit GOV.UK for official updates or contact the DWP at 0800 731 0469.
