What to know about the tax credit end

The tax credit end has officially happened in the UK. If you were claiming Working Tax Credit or Child Tax Credit, your payments have now been replaced by Universal Credit.

This change didn’t come out of nowhere, it was part of a wider government plan to simplify the benefits system. But now that it’s complete, a lot of people have been left asking: what just happened? 🤔

Let’s break it down!

What were tax credits and why did they end?

There were two types of tax credits:

• Child Tax Credit (CTC) – for people responsible for children
• Working Tax Credit (WTC) – for people on a low income, whether employed or self-employed
  

These payments were phased out and replaced by Universal Credit. The goal? To simplify the benefits system and roll multiple payments into one. 

The tax credit end was part of a wider rollout, where six different “legacy benefits” were gradually replaced by a single Universal Credit payment.

What replaced tax credits?

Universal Credit now combines:

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

Once you moved to Universal Credit, you couldn’t go back to claiming tax credits. And from 2024 onwards, you can’t make a new claim for tax credits at all.

When did the tax credit end happen?

The official end of tax credits took place by the end of 2024, as part of the Department for Work and Pensions (DWP) managed migration process.

Anyone still receiving tax credits was sent a migration notice explaining what to do next. If you didn’t act within three months of receiving your letter, your existing payments would have stopped. ⏳ 

Can I still claim tax credits now?

No. The tax credit end means you can no longer make a new claim, even if you were eligible before.

If your circumstances change and you need support, you’ll need to apply for Universal Credit instead. If you’re over State Pension age, Pension Credit might be available.

What happened to existing tax credit payments?

Before the tax credit end, claimants could still:

• Renew their tax credits (annually, using renewal packs)
  
• Update their details if circumstances changed 💻

What if I ignored the migration notice?

After moving to Universal Credit, any outstanding tax credit overpayments were carried over. The DWP now recovers those debts through Universal Credit payments, which may be reduced until the amount is repaid.

If you didn’t act within the three-month window after receiving a migration notice, your tax credit payments would have stopped automatically. You would have had to apply for Universal Credit to receive ongoing support. ✏️

If that happened and you’re still unsure what to do, you should check your eligibility online.

Final thoughts

The tax credit end wasn’t just a policy change, it was a full system shift. While some gained and others lost out, everyone who once claimed tax credits is now under the Universal Credit system.

If you’re not sure where you stand, or think you missed something during the migration, it’s worth reaching out for advice.