UK Working Tax Credit 2025: As the UK continues its transition to Universal Credit, one of the long-standing benefits—Working Tax Credit—is officially coming to an end. UK Working Tax Credit 2025 will no longer be available after 5 April 2025, marking a major shift for thousands of households who rely on it for financial support. This benefit, designed to help low-income individuals and families working a set number of hours, is being phased out as part of the government’s welfare reform plans.
If you’re currently receiving Working Tax Credit, or you believe you might be eligible, it’s essential to understand what’s changing, what to expect, and how to prepare for the move to Universal Credit or Pension Credit.
UK Working Tax Credit 2025
The UK Working Tax Credit 2025 scheme will end officially on 5 April 2025. After that date, no new payments will be made. Current claimants will be transferred to Universal Credit or, if they meet the required age and circumstances, Pension Credit. HMRC will send letters to eligible individuals with detailed instructions, and timely action is crucial to avoid any disruptions in your benefit payments.
Working Tax Credit 2025 – Quick Overview Table
| Category | Details |
| Final Payment Date | 5 April 2025 |
| Transition To | Universal Credit or Pension Credit |
| Notification Method | HMRC letter with guidance |
| Minimum Work Hours (standard claimants) | 30 hours per week (age 25–59) |
| Minimum Work Hours (other groups) | 16–24 hours depending on age, disability, and household |
| Maximum Joint Claim Amount | Up to £2,500/year |
| Disability Element | Up to £3,935/year |
| Severe Disability Element | Up to £1,705/year |
| Childcare Support | Up to £210/week for two or more children in approved care |
| Payment Frequency | Weekly or every 4 weeks via bank transfer |
Who Was Eligible for Working Tax Credit?
To receive Working Tax Credit before it ends, claimants had to meet specific working hours and income conditions, often tied to household structure or personal health.
Minimum Weekly Work Hours by Situation:
- Age 25 to 59: 30 hours
- Age 60 or older: 16 hours
- Disabled individuals: 16 hours
- Single parent with a child: 16 hours
- Couples with at least one child: 24 hours combined (one must work at least 16 hours)
👉 A “child” is anyone under 16 (or under 20 if in approved education or training).
Even those on maternity, paternity, or adoption leave could still qualify during that time.
Special Cases for Couples
Some couples working less than 24 hours total were still eligible if specific conditions applied, including:
- One partner is disabled
- One is over 60 years old
- One is receiving Carer’s Allowance or Carer Support Payment (Scotland)
- One partner is in hospital or prison
- One partner receives disability-related benefits
What Qualifies as Work?
You could be employed, self-employed, or both, but self-employed individuals needed to meet several criteria:
- Work must aim to make a profit
- The work must be regular and structured
- You must maintain detailed business records
- Income should align with at least the National Minimum Wage
📎 Documentation that supported self-employment claims included:
- Invoices and receipts
- Business plans and promotion materials
- Proof of licenses, insurance, or registration
How Much Was Paid Under Working Tax Credit?
Though payments varied based on personal circumstances, the following were the maximum annual or weekly amounts available until April 2025:
| Component | Maximum Amount |
| Single Parent or Couple (Joint Claim) | £2,500/year |
| 30+ Hours Work Bonus | £1,015/year |
| Disability Element | £3,935/year |
| Severe Disability Element | £1,705/year |
| Childcare (1 child, approved care) | £122.50/week |
| Childcare (2+ children, approved care) | £210/week |
How Were Payments Made?
Payments were made directly into your bank or building society account, either weekly or every four weeks. For couples, a joint bank account was required to receive payments.
Life Changes? Notify HMRC Immediately
If you’re still receiving Working Tax Credit, it’s critical to notify HMRC about any of the following within 30 days:
- You lose your job
- Your working hours drop below eligibility thresholds
- A child is born or adopted
- You separate from your partner or move in with someone new
Failing to report changes can result in overpayments, which you may need to repay, or worse, losing your entitlement altogether.
Moving to Universal Credit or Pension Credit
Starting in April 2025, if you’re receiving Working Tax Credit, you will be transitioned to:
- Universal Credit (if you’re under State Pension age)
- Pension Credit (if you’ve reached State Pension age)
📝 What to Expect:
- HMRC will send a letter with instructions tailored to your situation.
- You must apply promptly—delaying can lead to a break in payments.
- If your situation changes before April (e.g., job loss), you may need to apply early for Universal Credit.
What If You Don’t Receive the HMRC Letter?
By mid-April 2025, if you haven’t received your transition letter:
- Contact HMRC immediately to confirm your case status
- Don’t wait until the deadline, as delays can leave you without support
Will Universal Credit Pay the Same?
Not always. Your new benefit rate under Universal Credit will depend on several factors:
- Household income
- Number of children
- Housing costs
- Savings and assets
For some, Universal Credit may result in lower payments, while others might see an increase due to adjusted criteria.
Get Support During the Transition
Worried about switching? You’re not alone. Fortunately, there’s help available:
- Citizens Advice: Offers step-by-step support
- GOV.UK: Official guides and tools for checking benefit eligibility
- Jobcentre Plus: In-person or phone assistance with Universal Credit claims
Final Thoughts
The UK Working Tax Credit 2025 scheme is officially ending on 5 April 2025, making way for Universal Credit and Pension Credit. If you’re currently receiving this benefit, staying informed and acting early is crucial to avoid payment gaps or missed entitlements.
Once you receive your HMRC letter, follow its instructions carefully. Update your circumstances with HMRC and start preparing for the change now to keep your finances steady during the transition.
FAQs
What happens to my Working Tax Credit after April 5, 2025?
Your payments will stop, and you will need to transition to either Universal Credit or Pension Credit.
Can I still apply for Working Tax Credit?
No. Only those already receiving it can continue until April 2025. New applications are not accepted.
Will I get the same amount under Universal Credit?
Not necessarily. Your payment depends on your total income, living situation, and savings.
What if I don’t get my HMRC letter?
Contact HMRC directly to check your status and ensure you don’t miss out on benefits.
Where can I get help?
Citizens Advice, GOV.UK, and Jobcentre Plus all offer free support and resources.
