Working Tax Credit no longer exists. Tax credits ended on 5 April 2025, and nobody can make a new claim. Working-age claimants were asked to move to Universal Credit, and most people over State Pension age were moved to Pension Credit or Housing Benefit instead. If you used to get Working Tax Credit, or you are looking for help as a working person on a low income now, this guide explains what changed and what to check.
What happened to Working Tax Credit?
Working Tax Credit and Child Tax Credit were among the six "legacy" benefits replaced by Universal Credit. New claims had been closed for years in most cases, and HMRC and DWP then sent migration notices asking remaining claimants to claim Universal Credit by a deadline. Tax credits ended completely on 5 April 2025.
- No new claims for Working Tax Credit are possible
- Working-age claimants: moved to Universal Credit
- Most people over State Pension age: moved to Pension Credit or Housing Benefit
- HMRC can still recover tax credit overpayments from earlier years
- If you never moved and your payments stopped, contact Citizens Advice for help claiming what you are entitled to now
Can I still claim Working Tax Credit?
Universal Credit vs Working Tax Credit: the key differences
Universal Credit works quite differently from tax credits:
| Feature | Working Tax Credit | Universal Credit |
|---|---|---|
| Assessment | Annual, based on yearly income | Monthly, based on each month's pay |
| Hours rule | Minimum hours to qualify | No minimum hours |
| Earnings | Reduced as income rose above a threshold | Reduced by 55p per £1 above any work allowance |
| Savings | No savings limit | Reduced over £6,000, no entitlement over £16,000 |
| Childcare | Up to 70% of costs | Up to 85% of costs, up to a monthly limit |
See our guides to how Universal Credit works and Universal Credit and savings.
Transitional protection if you were moved across
If you moved to Universal Credit because you got a migration notice and claimed by the deadline, and your UC award was lower than your tax credits, you should have received a transitional element to make up the difference. It is not permanent: it reduces as your UC increases (for example with annual uprating) and stops if certain things change, such as forming or ending a couple, or your earnings staying low for several months.
Former tax credit claimants who had savings over £16,000 could also have the amount above £16,000 ignored for up to 12 months after moving. If you think your transitional protection was missed or calculated wrongly, ask DWP for a mandatory reconsideration and get help from Citizens Advice or a welfare rights adviser.
Help for working people on a low income now
If you work and are on a low income, these are the main kinds of support to check:
- Universal Credit: for working-age people in or out of work; use a benefits calculator to check
- Pension Credit: tops up income for people over State Pension age
- Council Tax Reduction from your council
- Help to Save: a 50% bonus on savings of up to £50 a month for working Universal Credit claimants (former Working Tax Credit savers can keep their accounts)
- Tax-Free Childcare: £2 for every £8 you pay, up to £2,000 a year per child (not available while you or your partner get Universal Credit)
Frequently asked questions
When did Working Tax Credit end?
Do I still have to repay a tax credit overpayment?
I had a Help to Save account through Working Tax Credit. Can I keep it?
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