The Working Tax Credit scheme in the UK officially ends on 5 April 2025. After this date, no new Working Tax Credit payments will be made. If you’re currently receiving Working Tax Credit or are eligible, you’ll either be moved to Universal Credit or, if you meet the age requirement, Pension Credit.
Transition to Universal Credit or Pension Credit
If you’re currently on Working Tax Credit, HMRC will notify you by letter if you’re eligible to apply for Universal Credit or Pension Credit. The letter will contain guidance tailored to your circumstances. It’s crucial not to delay the application process once you receive the letter, as a gap in benefits could occur.
Who Was Eligible for Working Tax Credit?
To receive Working Tax Credit, claimants had to meet specific work hour requirements based on personal or family circumstances.
Work Hours Requirements:
| Circumstance | Minimum Weekly Hours Required |
|---|---|
| Aged 25 to 59 | 30 hours |
| Aged 60 or over | 16 hours |
| Disabled | 16 hours |
| Single with at least one child | 16 hours |
| Couple with at least one child | 24 hours (one must do 16) |
A “child” is defined as someone under 16, or under 20 if in approved education or training.
You could still qualify for Working Tax Credit if you were on statutory leave such as maternity, paternity, or adoption leave.
Special Cases for Couples
Couples working less than 24 hours combined may still have qualified if at least one partner worked 16 hours or more, and one of the following applied:
- One partner is disabled
- One partner is aged 60 or over
- One partner receives Carer’s Allowance or Carer Support Payment (Scotland only)
- One partner is incapacitated (receiving disability-related benefits)
- One partner is in hospital or prison
What Qualifies as Work?
You could be employed, self-employed, or do both. However, self-employment must meet strict criteria:
- Must aim to generate profit
- Work should be regular and structured
- You must maintain detailed business records
- Your earnings should at least match the National Minimum Wage
Examples of acceptable documentation include:
- Invoices and receipts
- Business plans
- Promotional materials (flyers, ads)
- Proof of licenses or insurance if applicable
Working Tax Credit Amounts (Until 5 April 2025)
| Component | Annual or Weekly Maximum |
| Couple (joint claim) | Up to £2,500/year |
| Single parent | Up to £2,500/year |
| Work 30+ hours/week | Up to £1,015/year |
| Disability element | Up to £3,935/year |
| Severe disability supplement | Up to £1,705/year |
| Childcare (1 child, approved care) | Up to £122.50/week |
| Childcare (2+ children, approved care) | Up to £210/week |
How Payments Were Made
Payments were made directly into your bank or building society account, usually weekly or every four weeks. Couples had to designate a single joint account.
Important: Notify HMRC of Life Changes
If you’re already receiving Working Tax Credit, any significant change in your circumstances must be reported to HMRC within 30 days. This includes:
- Job loss
- Reduction in working hours below qualifying threshold
- Birth or adoption of a child
Failing to report changes can result in overpayments or loss of entitlement.
What to Do If You’re Moving to Universal Credit
You might need to apply for Universal Credit earlier than April 2025 if your situation changes. When that happens, your Working Tax Credit will end immediately, and you must claim Universal Credit separately. The HMRC letter you receive will guide you on what to do next.
Conclusion
As of April 5, 2025, the UK government will end the Working Tax Credit scheme entirely. If you’re receiving it now or planning to apply, it’s time to prepare for the transition to Universal Credit or Pension Credit. Stay alert for official communication from HMRC and ensure your information is up to date. This change could impact your monthly income, so early action is critical.
FAQ
What happens to my Working Tax Credit after April 5, 2025?
Your payments will stop, and you’ll be moved to either Universal Credit or Pension Credit depending on your eligibility.
Will I get the same amount under Universal Credit?
Not necessarily. The amount you receive under Universal Credit may differ based on your income, savings, and household circumstances.
Can I still apply for Working Tax Credit now?
No. As of 2025, you can only receive it if you’re already claiming Child Tax Credit and meet eligibility rules.
What if I don’t receive the HMRC letter?
If you haven’t received a letter by mid-April 2025, contact HMRC to check your status and next steps.
Is there any help for those confused about the transition?
Yes. Citizens Advice and GOV.UK both provide step-by-step guidance on switching to Universal Credit.
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