Universal credit: Existing tax credit claimants
This section of the website looks at how existing tax credit claimants are affected by Universal Credit (UC).
Existing tax credit claimants can continue with their tax credit awards until they either:
- make a claim for UC because they choose to
- have to claim UC because of a change in their circumstances or;
- are selected DWP and HMRC’s formal migration exercise to move remaining tax credit claimants to UC
- Are issued with a tax credits closure notice and invited to claim pension credit.
The schedule for tax credit claimants who have reached their state pension age (for couples, where both have reached state pension age, broadly follows two paths:
- State pension age claimants who are claiming working tax credit (with or without child tax credit) and who are not claiming pension credit, will be issued with migration notices and invited to claim UC, with some specific rule changes in UC to allow them to claim.
- State pension age claimants who are claiming child tax credit and are not entitled to working tax credit and state pension age claimants who are claiming tax credits and also pension credit at the same time, will be issued with tax credits closure notices and, if not already doing so, will be invited to claim pension credit instead of tax credits.
In both scenarios transitional protection will be available . Most mixed age couples will be invited to claim universal credit although those who are protected (which means they are still entitled to claim pension credit) and claiming child tax credit only will be invited to claim pension credit. Similarly those mixed age couples already claiming pension credit alongside tax credits will remain on pension credit. See our pensioners page for more information.
Existing tax credit claimants can move to UC outside the formal exercise through either ‘voluntary migration’ or 'natural migration'. This happens if:
- they choose to make a UC claim (voluntary migration). Some existing tax credit claimants may be financially better-off claiming UC instead of tax credits but this is a vey complicated area and specialist advice must be sought before making this decision as it is not possible to go back to tax credits once the UC claim has been made.
- they have a change in circumstances that ends their tax credit claim but they need to continue claiming support (e.g. change from joint to single household) (natural migration)
- they need to make a claim for another benefit that has been replaced by UC. For example, a tax credit claimant who needs to make a claim for help with their rent would have claimed housing benefit previously. However, housing benefit (in most cases, although there are some exceptions) has been replaced by UC. So to access help with their rent they need to make a UC claim which in turn will end their tax credits claim. (natural migration)
- they don’t renew their tax credits in time and the tax credit claim can’t be reinstated so they need to make a fresh claim for support (see our tax credit renewals section).
We explain more about how tax credit claims are brought to an end in these situations in our making a universal credit claim section. We also consider what happens if someone accidentally or mistakenly claims UC.
We explain which changes of circumstances will end a tax credits claim and require a UC claim in our changes of circumstances section.
Finally, we look at how HMRC finalise tax credit claims for someone moving to UC in our finalising tax credits claims section and what happens to tax credit debt when someone moves to UC in our tax credits debt section.
Last reviewed/updated 20 June 2024