The UK’s Child Tax Credit is officially set to end on 5 April 2025, marking a major milestone in the country’s benefits system. First introduced in 1909 during David Lloyd George’s government, the credit has long helped low-income families manage the costs of raising children. Now, with the full rollout of Universal Credit, Child Tax Credit will no longer be available for new or existing claims after the cut-off date.
Here’s what families need to know about the final phase of Child Tax Credit, updated for April 2025.
What Is Changing in 2025?
From 6 April 2025, the Child Tax Credit will be fully phased out. If you’re still receiving it, your payments will stop automatically unless you’ve already transitioned to Universal Credit or Pension Credit, depending on your circumstances.
Those currently receiving Working Tax Credit may have some overlap, but new Child Tax Credit claims are no longer accepted. Instead, new applicants are directed to the Universal Credit system, which now includes a “child element” to support similar financial needs.
Who Can Still Receive Child Tax Credit Until April 2025?
You may still receive Child Tax Credit until April 2025 only if:
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You already receive Working Tax Credit
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You’ve previously been approved and your child is eligible based on birthdate and education status
If you are not already receiving Child Tax Credit, you’ll need to apply for Universal Credit, which has now replaced it for most low-income families.
Payment Amounts & New Rates for 2025
While Child Tax Credit is ending, the government has introduced new Child Benefit rates for 2025, reflecting inflation adjustments and broader economic support measures.
Child Benefit Rates for April 2025 Onward:
| Child Position | Weekly Rate | Annual Total (Approx.) |
|---|---|---|
| Eldest/Only Child | £26.05 | £1,354.60 |
| Each Additional Child | £17.25 | £897.00 |
| Example for 3 Children | £60.55 total per week | £3,148.60 annually |
These new rates take effect beginning 6 April 2025, providing continued support to eligible families through the Child Benefit system.
Eligibility Requirements in 2025
Basic Criteria
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Child’s Age: Must be under 16, or under 20 if still in approved education or training
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Residency: The child must live in the UK or meet special residency conditions
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Claim Limit: Only one person can claim for each child
Special Situations
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Legal guardians, kinship carers, or foster parents may claim if the child lives with them and meets standard requirements.
Overlap with Other Benefits
While Child Benefit and Universal Credit can be claimed together, your Universal Credit payment may be reduced based on how much Child Benefit you receive. Always check your total benefit cap to ensure compliance and maximize financial support.
Childcare Support Under Universal Credit
If you’re moving to Universal Credit and have childcare costs, you may claim up to 85% of your eligible expenses. For the 2024/25 tax year, the limits are:
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£1,014.63/month for one child
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£1,739.37/month for two or more children
This makes Universal Credit more dynamic for working parents juggling childcare responsibilities.
How and When You Are Paid
Payments are made directly into the bank account of the main caregiver. Depending on your arrangement, they may be issued:
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Every 4 weeks (standard)
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Weekly (if eligible for more frequent payments)
If a scheduled payment falls on a bank holiday, it is typically processed early. Delays or underpayments should be reported immediately to the Child Benefit helpline.
Transitioning to Universal Credit or Pension Credit
After 5 April 2025, you’ll no longer receive Child Tax Credit. Instead:
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Working-age families should apply for Universal Credit
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Couples or individuals over State Pension age may qualify for Pension Credit
Letters will be sent out automatically if you’re affected, so it’s crucial to keep your contact details up to date with HMRC.
Conclusion
The phase-out of Child Tax Credit in April 2025 marks a significant transition for many UK families. While this change may feel uncertain, Universal Credit and enhanced Child Benefit rates are designed to continue supporting those in need—especially those with young or school-age children.
If you haven’t yet reviewed your eligibility or transitioned to Universal Credit, now is the time to act. Make sure you’re not caught off guard by the April 2025 deadline.
FAQs About UK Child Tax Credit 2025
What happens to my Child Tax Credit after April 2025?
All payments will stop after 5 April 2025. If you’re eligible, you will need to transition to Universal Credit or Pension Credit.
Can I still apply for Child Tax Credit in 2025?
No, new applications are not accepted. Only those who already receive Working Tax Credit may still qualify until the end date.
What if I have a baby in 2025—can I get Child Tax Credit?
No, but you can claim Child Benefit and apply for Universal Credit’s child element instead.
Will my Child Benefit change because of this?
No, Child Benefit is separate from Child Tax Credit and continues regardless. New 2025 rates offer increased weekly payments.
What should I do if my payment is late or wrong?
Contact the Child Benefit helpline immediately. Keep track of your payment dates and bank records for easier resolution.
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