Tax credits are ending on 5 April 2025

Universal Credit is replacing tax credits. The Department for Work and Pensions (DWP) or the Department for Communities (for Northern Ireland customers) will write to all eligible customers during 2024 and inform them of the need to move to Universal Credit, to continue to receive financial support.  

If you do not claim by the deadline date in that letter your existing tax credits payments will stop, even if you have just renewed your tax credits claim.  

If you are claiming tax credits and are State Pension age or over, the DWP or the Department for Communities will write to you to ask you to apply for Universal Credit or Pension Credit, depending on your circumstances.  

A very small number of customers will not be eligible for Universal Credit or Pension Credit. These customers will be able to remain on and receive tax credits until 5 April 2025, unless a change in their circumstances ends tax credits sooner. After this date, tax credits will end, and no further tax credits payments will be made.  

Your 2024 to 2025 tax credits notices may show some predicted payments for the tax year 2025 to 2026. These are automatically generated and should be disregarded.  

You do not need to do anything now.  
All eligible customers will receive a letter from the DWP or the Department for Communities telling you what to do. This letter is called a Migration Notice.  

Customers who do not receive a Migration Letter will continue to get tax credit payments until 5 April 2025, unless they have a change in their circumstances which ends their tax credits sooner.  If you claim Universal Credit before you receive a Migration Notice, the amount of Universal Credit you are entitled to may be less than the amount you receive in tax credits.
 

Hi,

You should have received a letter to confirm Tax Credits has stopped the Direct Debit for the debt. You can see guidance here:

https://www.gov.uk/tax-credits-overpayments/universal-credit

When you transfer to Universal Credit any debt is sent to DWP also. DWP should contact you to start recovery of the outstanding balance. We do not have a timescale for this. However, if  you are worried you can contact the DWP debt management team. More information on the outstanding balance and contacting DWP Debt Management can be found here:

Repay and manage benefit money you owe

Thank you.