As of April 5, 2025, Working Tax Credit and Child Tax Credit have officially ended, marking a significant milestone in the UK’s transition to Universal Credit. This change is part of the Department for Work and Pensions’ (DWP) managed migration plan, which aims to consolidate six legacy benefits into a single, streamlined system. The deadline for claimants to secure transitional protection has now passed, leaving many to navigate the next steps.
The End of Tax Credits
Tax credits, which have been a financial lifeline for many families and low-income workers, ceased on April 5, 2025. From this date, no further payments will be issued under the old tax credit system. Instead, eligible individuals were required to transition to Universal Credit to continue receiving support. The DWP sent migration notices to inform claimants of this change and provided a deadline to apply for Universal Credit.
Managed Migration Process
The managed migration process involves the DWP sending out migration notices to individuals receiving legacy benefits, including tax credits. These notices inform recipients that their current benefits will end and instruct them to apply for Universal Credit by a specified deadline. Failing to apply by this deadline means losing entitlement to transitional protection, which could result in a reduction of benefits.
The DWP aimed to send migration notices to all tax credit claimants by September 2024, with the goal of completing the transition by March 2026. However, the deadline for securing transitional protection has now passed, and individuals who did not apply for Universal Credit may find themselves without financial support.
Transitional Protection Explained
Transitional protection was designed to ensure that individuals moving from legacy benefits to Universal Credit would not receive less financial support than they did previously. If a claimant’s Universal Credit entitlement was less than their previous benefits, they were entitled to a transitional element to make up the difference. This protection was intended to last until their Universal Credit entitlement increased to match or exceed their previous benefits.
However, with the deadline for securing transitional protection now passed, individuals who did not apply for Universal Credit may not receive this safeguard. This could lead to financial hardship for those who relied on tax credits for their income.
Current Status and Next Steps
As of now, the transition from tax credits to Universal Credit is complete. Individuals who have successfully applied for Universal Credit should continue to receive their payments as usual. For those who missed the deadline, it’s crucial to contact the DWP immediately to explore potential options. While the deadline for transitional protection has passed, there may still be avenues to receive support, depending on individual circumstances.
It’s also important to note that the DWP continues to send migration notices to recipients of other legacy benefits, such as income-related Employment and Support Allowance (ESA) and Housing Benefit. These individuals must also apply for Universal Credit by their specified deadlines to avoid losing their benefits.
Seeking Assistance
For those affected by the transition, several resources are available:
- Citizens Advice Bureau: Offers free, confidential advice on Universal Credit and other benefits.
- DWP Helpline: Provides direct assistance with Universal Credit applications and queries.
- Online Benefits Calculators: Tools like Turn2Us and EntitledTo can help determine eligibility for Universal Credit and other support.
It’s essential to act promptly to ensure continued financial support and to understand the full implications of the transition.
Conclusion
The end of tax credits and the transition to Universal Credit represent a significant shift in the UK’s welfare system. While the deadline for securing transitional protection has passed, individuals who missed it should not despair. By seeking assistance and exploring available resources, they can navigate this change and ensure they receive the support they need.
