The Department for Work and Pensions (DWP) has officially begun notifying thousands of UK residents about the end of HMRC tax credit payments. From April 5, 2025, all tax credit claims will be terminated, and claimants must take action to transition to Universal Credit or alternative benefits.
If you’ve received a Migration Notice, it’s crucial to understand what this means, how to respond, and how to avoid losing financial support.
Why Are Migration Notices Being Sent by DWP
As part of a planned government overhaul, the UK is phasing out Working Tax Credit and Child Tax Credit, replacing them with Universal Credit. The Migration Notices are formal letters sent to affected individuals, explaining their obligation to act within three months of receiving the notice.
Failing to transition by the deadline means your benefit payments will stop.
Important Tax Credit Termination Dates
| Key Event | Date or Duration |
|---|---|
| End of Tax Credit Payments | April 5, 2025 – Tax credits officially stop |
| Action Deadline After Notice | 3 months from receipt of Migration Notice |
| Deadline to Apply for Universal Credit | Before your Migration Notice expiry |
| Housing Benefit Extension | Two weeks after migration (if currently receiving it) |
Who Needs to Take Action Before April 5
The following groups are directly impacted and must act:
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Tax Credit Recipients – Anyone currently receiving Working Tax Credit or Child Tax Credit
-
State Pension Age Households – Even if only one partner is over State Pension age
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Housing Benefit Claimants – You must apply for Universal Credit to retain housing support
If you don’t act, your current payments will stop, and you could experience a gap in financial assistance.
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Can You Choose an Alternative to Universal Credit
In some cases, Pension Credit may be an alternative, especially for those over State Pension age. However:
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Choosing Pension Credit excludes you from receiving Transitional Protection, which helps ensure you don’t lose money when switching to Universal Credit
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It’s best to check your financial eligibility before making this decision
What Help Is Available During the Transition
Universal Credit payments begin five weeks after a successful claim, but there are support options in the meantime:
| Support Option | Details |
|---|---|
| Universal Credit Contingency Fund | One-time grant to cover urgent costs |
| Housing Cost Support | Included in Universal Credit for eligible renters |
| Two-Week Housing Benefit Extension | Automatically paid if moving from Housing Benefit |
If you have over £16,000 in savings, you can still claim Universal Credit temporarily for up to 12 assessment periods.
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How to Apply for Universal Credit
Here’s a step-by-step process to help you apply correctly:
-
Step 1: Read Your Migration Notice
Note your deadline and which benefits are affected -
Step 2: Gather Documents
Prepare identification, bank details, proof of income, and housing expenses -
Step 3: Apply Online
Use the official Universal Credit website to complete your claim -
Step 4: Attend an Interview
Some applicants may be invited to a local Jobcentre Plus -
Step 5: Receive Confirmation
Once verified, you’ll be informed of your payment schedule
What Happens If You Don’t Apply in Time
If you fail to apply for Universal Credit before your deadline:
-
Your tax credit payments will stop
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Your housing benefit (if applicable) will end the day before your migration deadline
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You will not be eligible for Transitional Protection
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You may experience delays or income gaps while reapplying
To avoid this, apply early or reach out for help from DWP advisors, local support services, or a welfare rights organization.
What If You Need Help Understanding Your Options
If you’re unsure about the process or which benefit you should apply for:
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Contact DWP support services directly
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Visit GOV.UK and navigate to the Universal Credit section
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Consult with a citizen’s advice bureau or financial advisor
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Review your Migration Notice carefully—it includes all necessary timelines
FAQs
Why are tax credits ending in April 2025?
The UK government is phasing out HMRC tax credits and moving claimants to Universal Credit as part of a long-term benefit simplification plan.
What is a Migration Notice from DWP?
It is a letter informing you that your current benefits are ending and that you must apply for Universal Credit or another eligible benefit.
What’s the deadline to apply after getting the notice?
You have three months from the date of the notice to apply for Universal Credit and maintain continuous support.
Will I lose my Housing Benefit if I don’t apply?
Yes. If you don’t transition before the deadline, your housing support will stop the day before your notice expires.
Can I apply for Pension Credit instead of Universal Credit?
Yes, but be aware that you won’t receive Transitional Protection, which is designed to prevent income drops.
How long will it take to get my first Universal Credit payment?
Usually, it takes five weeks, but you can request advance payments or support grants to cover essential expenses.
What happens if I ignore the letter?
You’ll lose access to tax credits and may have to reapply from scratch, which could result in weeks or months without income.
Where can I get help with the Universal Credit application?
Visit GOV.UK, contact the DWP helpline, or seek help from your local Jobcentre Plus or citizen support agency.
Click here to know more.
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