Universal Credit (UC) is gradually replacing tax credits, and some other social security benefits. Universal credit is now available across the UK and HMRC state that it is no longer possible for anyone to make a brand-new claim for tax credits. The only exception is for certain people who are granted refugee status. Instead, people are expected to claim UC or pension credit depending on their circumstances.  Currently, existing tax credit claimants can continue to renew their tax credits and/or add extra elements to their claim. See our existing tax credit claimants page for more information. Our understanding is that the majority of existing tax credit claimants will move to either universal credit or pension credit by the end of the 2024/25 tax year. You can find out more about this in our universal credit section. 

Updated on 29 August 2024

Managed migration

Managed migration is where DWP/HMRC formally invite claimants from tax credits (and other legacy benefits which universal credit is placing) to make a claim for universal credit under formal migration rules.

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Although this exercise is referred to as ‘managed migration’, you should be aware that you will not be automatically transferred over to universal credit but you will be issued with a migration notice and will need to make your claim for universal credit (or have someone act for you in doing so) by the date specified in the notice. You can read more about the timescales for migration on our migration timetable page and about the process on our migration process page.

If you have reached your state pension credit qualifying age  and currently claim tax credits, DWP say they will contact you from August 2024 and ask you to claim either universal credit or pension credit depending on your circumstances.

If you have reached your state pension qualifying age (either of you if you are a mixed age couple) and you currently claim working tax credit (with or without child tax credit) and are not also entitled to pension credit, you will be sent a migration notice and invited to claim universal credit in line with the main exercise. The normal rule preventing universal credit claims for those who have reached their state pension qualifying age are waived for this group.

If you have reached your state pension qualifying age and you are currently entitled to an award of tax credits and pension credit or if you have reached your state pension qualifying age (if you are a mixed age couple, this will include you if you are already claiming housing benefit under pension age rules and have continued to do so since 2019) and you currently claim child tax credit but are not entitled to working tax credit, you will be sent a tax credits closure notice. Transitional protection will apply in a similar way to transitional protection for people who receive a migration notice to claim universal credit. We have more information for those who have reached state pension credit age or who are part of a mixed age couple on our existing tax credit claimants page.

Some people are not permitted to claim universal credit or pension credit and at some point their tax credit awards will end. We do not currently have any further information about this..

The main difference between moving from tax credits to universal credit under the formal migration process is that those moving under managed migration may receive transitional protection.

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