The Department for Work and Pensions (DWP) has confirmed that Tax Credits—including Working Tax Credit and Child Tax Credit—will be permanently phased out starting this weekend.
This move is part of the ongoing national rollout of Universal Credit, which is set to replace multiple legacy benefits and simplify the welfare system.
If you’re still receiving Tax Credits, it’s crucial to act immediately. From this weekend forward, no further DWP payments will be made unless you transition to Universal Credit.
What’s Changing and Why It Matters
Tax Credits have long provided financial support to low-income workers and families. However, they are now being completely replaced by Universal Credit, which combines six benefits into one monthly DWP payment.
This change is already underway, and recipients have been receiving Migration Notices instructing them to move over.
Failing to take action by the deadline may result in a complete loss of benefits.
Key Details You Need to Know
| Key Point | Details |
|---|---|
| Benefit Being Axed | Working Tax Credit & Child Tax Credit |
| Effective End Date | This weekend (April 6–7, 2025) |
| Replacement Benefit | Universal Credit |
| Action Required | Apply for Universal Credit before cut-off |
| Consequence of Inaction | No further DWP payments, risk of benefit gap |
| Support Available | DWP support services and local assistance centers |
Who Is Affected?
All individuals and families currently receiving:
- Working Tax Credit
- Child Tax Credit
- Combined Tax Credit payments
You are required to move to Universal Credit if you have received a Migration Notice from DWP. These notices provide a 3-month deadline to complete the transition.
Even if you have not yet received a Migration Notice, it’s advised to check your eligibility and prepare your Universal Credit application in advance.
How to Apply for Universal Credit
To continue receiving support:
- Check Your Eligibility
Use an online eligibility checker or consult a benefits advisor. - Gather Required Documents
You’ll need your National Insurance number, housing costs, childcare details (if applicable), and bank account information. - Apply Online
Universal Credit applications are processed online. Start your claim immediately after receiving your Migration Notice. - Complete Your Identity Check
Verification may involve uploading documents or a video call. Delays here can hold up payments.
Will Payments Change?
Yes. Your payment under Universal Credit may differ from what you received through Tax Credits. This depends on your:
- Income
- Household size
- Housing costs
- Childcare needs
Some people may receive transitional protection to prevent a drop in income during the move. This is only available if you apply within the Migration Notice deadline.
The clock is ticking. With DWP ending Tax Credits this weekend, it’s critical for all recipients to apply for Universal Credit immediately. Waiting too long could mean a complete halt in support, leaving you and your family financially vulnerable.
Ensure your transition is smooth: gather your documents, verify your information, and submit your claim on time. This is not just a policy update—it’s a direct impact on your income.
Act now to protect your payments.
FAQs
What happens if I ignore the Migration Notice?
You will stop receiving Tax Credit payments. Once your 3-month deadline passes, you’ll need to apply for Universal Credit as a new claimant—without transitional protection.
Can I go back to Tax Credits after switching?
No. Once you’ve switched to Universal Credit or your Tax Credits end, you cannot return to the old system.
How long does it take to receive Universal Credit payments?
Initial payments may take up to 5 weeks, but you can request an advance payment if needed during this period.