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Thousands of parents have been sent urgent warning letters from the Department for Work and Pensions (DWP), as a major benefit—Tax Credits—is coming to an end this weekend.
Tax Credits will officially stop on April 5, 2025, marking the first phase in the phasing out of legacy benefits this year. Anyone receiving a migration notice must apply for Universal Credit before the deadline, or their payments will stop.
However, a large number of recipients of Child Tax Credits and Working Tax Credits have yet to apply for Universal Credit. Those who miss the deadline won’t qualify for transitional protection—a financial safeguard that can amount to thousands of pounds.
According to the DWP’s website, “Tax credits end on 5 April 2025. No more payments will be made after that. You’ll be sent a letter if you are eligible for Universal Credit or Pension Credit instead.”
Even if you miss your deadline, you can still apply for Universal Credit later, but you will no longer be eligible for transitional protection. This extra financial support is meant to prevent claimants from being worse off after switching.
Research by Ipsos UK for the DWP found that while 78% of respondents had heard of Universal Credit, 70% didn’t know about transitional protection.
What is transitional protection?
Transitional protection is a financial top-up for those who would receive less under Universal Credit than they currently do with Tax Credits. For example, if you currently get £600 a month from Tax Credits but would only receive £400 under Universal Credit, you’d get a £200 top-up to keep your income stable.
The government states: “Many people will receive the same or more on Universal Credit compared to their previous benefits. If your entitlement under Universal Credit is lower, you may be eligible for financial protection. This extra amount is known as 'transitional protection.'”
While it might sound temporary, transitional protection can last for a long time. It remains in place until your Universal Credit entitlement surpasses your old benefit amount—possibly due to inflation increases or changes in your eligibility. However, it can be lost if your circumstances change significantly, such as moving in with a partner or other major life events that prompt a reassessment.
What is Managed Migration?
The move is part of the DWP's ongoing managed migration programme, which aims to move all claimants of legacy benefits to Universal Credit by March 2026.
These include
- Child Tax Credits
- Housing Benefit
- Income-based Jobseeker's Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credits
There’s been widespread confusion surrounding the transition to Universal Credit, with many claimants at risk of losing their transitional protection if they don’t act within three months of receiving their migration notice.
The Department for Work and Pensions (DWP) aims to issue migration notices to all individuals on legacy benefits by the end of this year. Each letter will include a specific deadline by which a claim for Universal Credit must be made.
For those who need help during the switch, support is available through the Universal Credit Migration Notice Helpline.
The helpline operates Monday to Friday, from 8am to 6pm.
Phone: 0800 169 0328
Calls to 0800 numbers are free from both landlines and mobile phones.
