Tax credits are ending and are being replaced by Universal Credit.

1. Tax credits are ending

If you are currently claiming tax credits, you will be asked to apply for Universal Credit at some point between now and the end of 2024.

It might feel like a big change, but there’s lots of support and advice to help you switch over.

What is Universal Credit?

Universal Credit is a modern benefits system for people in work, looking for work or unable to work. It brings together six older benefits and helps make sure you’re getting the financial support you are entitled to in one place.

It adapts to your life too – for example, if you’re claiming Universal Credit and find yourself out of work unexpectedly, your Universal Credit payment will adjust automatically to support you. And if you want to take on more work, you may still be eligible for Universal Credit to make it financially worthwhile.  

It can also help pay for childcare costs and give you access to a work coach, who can give you tailored guidance on improving your skills and progressing at work to help you support your family.

Learn about more ways that Universal Credit can support you here.

When will I need to move?

You will get a letter called a Universal Credit Migration Notice from the Department for Work and Pensions (DWP) telling you when to claim. It is important to act quickly and follow the instructions in the letter, otherwise your benefits will stop.

To continue receiving financial support, you will need to claim Universal Credit by the deadline date given in your letter, even if you have already renewed your tax credit claim.

You will not be moved to Universal Credit automatically, so you must take action and apply by the deadline provided in your migration notice.