The Department for Work and Pensions (DWP) has announced the exact date it will phase out Tax Credits in the UK, impacting around 730,000 current claimants. This move is part of the ongoing transition to Universal Credit.

From April 6, 2025, the DWP will eliminate all Tax Credit claims. This includes both Working Tax Credit and Child Tax Credit. The recent DWP regulation removes the exception that allowed for the renewal of existing Tax Credit claims or for claimants of one Tax Credit to apply for the other. As a result, no new claims or renewals for Tax Credits will be accepted after this date.

Claimants must renew their current Tax Credit claims by July 2024, which will be the final renewal period. Failure to transition to Universal Credit by the deadline will result in the cessation of benefit payments. The DWP’s phased migration process ensures that all affected individuals will receive a migration notice and have three months to apply for Universal Credit.

For assistance with the transition, claimants can apply online, contact the Universal Credit Migration Notice helpline, or visit their local Job Centre. The transition to Universal Credit includes a five-week waiting period for the first payment, after which regular payments will continue.

The move to Universal Credit began a few years ago but was paused due to the COVID-19 pandemic. The resumption of this process affects not only Tax Credit recipients but also those receiving other legacy benefits, including Housing Benefit and Income-based Jobseeker’s Allowance.