Tax Credit Payments will stop forever in April 2025: Thousands of people in the UK who still receive tax credits are being warned they could lose their payments forever if they don’t apply for Universal Credit (UC) by the end of March 2025. This warning affects anyone who hasn’t yet made the switch to the new benefit system. Tax credits are officially ending in April, and those who don’t act in time will stop receiving financial support.
What’s Happening to Tax Credits?
The UK Government is phasing out Working Tax Credit and Child Tax Credit, and moving everyone onto Universal Credit. This change is part of a welfare system overhaul that has been ongoing for several years.
If you are still receiving tax credits, you should have already received a Migration Notice — an official letter from the Department for Work and Pensions (DWP) — telling you how and when to apply for Universal Credit.
Deadline You Can’t Ignore: April 5, 2025
According to Martin Lewis’ Money Saving Expert (MSE) website, tax credits will officially end on April 5, 2025.
If you haven’t responded to the migration letter and applied for UC by then, your tax credit payments will stop, and you may face serious financial hardship.
Key Points from MSE’s Warning:
- Tax credits will END on April 5, 2025.
- DWP letters have been sent out to those who must apply for Universal Credit.
- Ignoring this letter means your benefits will be cut off.
- About 30% (3 in 10) people who received these letters previously lost their benefits because they did not act in time.
Who Is Affected?
- Anyone receiving Working Tax Credit or Child Tax Credit.
- People who have not yet applied for Universal Credit after receiving a Migration Notice.
If you are on any other legacy benefits like Income Support, ESA, or Housing Benefit, you may also be contacted for migration to UC — but this particular deadline focuses on tax credit claimants.
What Should You Do If You Receive a Migration Notice?
- Read the letter carefully — it has instructions on how to apply for UC.
- Apply for Universal Credit before the deadline stated in your letter — usually within three months of getting the notice.
- If you don’t apply, your tax credits will stop, and you won’t automatically be transferred — you must act yourself.
- Seek help and advice if you are unsure how to apply — speak to Citizens Advice or contact DWP helpline.
Why Is This Important?
If you rely on tax credits to pay your bills, buy food, and manage daily expenses, missing this deadline could leave you without vital income. Once your payments stop, they won’t restart even if you apply late.
Also, Universal Credit may offer different amounts of support compared to tax credits. It’s important to apply on time and understand how much you’ll receive under UC.
What Is Universal Credit?
Universal Credit is a monthly payment designed to help with living costs. It has replaced several older benefits, including:
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Housing Benefit
- Child Tax Credit
- Working Tax Credit
If you are still on tax credits, this is your final chance to apply for Universal Credit and avoid losing your payments. Act now — don’t ignore any letters from DWP. You have until April 5, 2025, but the sooner you act, the better. Help is available, so reach out if you need guidance.
FAQ
When are tax credits ending in the UK?
Tax credits, including Working Tax Credit and Child Tax Credit, are officially ending on April 5, 2025. You must apply for Universal Credit before this date to avoid losing your financial support.
What happens if I don’t apply for Universal Credit?
If you don’t apply for Universal Credit before the deadline mentioned in your DWP Migration Notice, your tax credit payments will stop permanently, and you may face serious financial hardship.
How will I know if I need to apply for Universal Credit?
You will receive a Migration Notice from the Department for Work and Pensions (DWP) that explains when and how to apply for Universal Credit. It’s important to follow the instructions in this letter.
Can I get help with applying for Universal Credit?
Yes, if you are unsure how to apply for Universal Credit, you can get free help and advice from Citizens Advice or by calling the DWP helpline.
Will my Universal Credit payments be the same as tax credits?
Not necessarily. Universal Credit payments may differ from tax credits. It’s important to apply early to understand how much support you will receive under Universal Credit.
