The Department for Work and Pensions (DWP) has reached a significant milestone in its ongoing overhaul of the UK benefits system. As of 5 April, Working Tax Credit and Child Tax Credit officially ceased, ending a key chapter in the transition towards Universal Credit.
This shift is part of a broader strategy to consolidate six “legacy benefits” into a single streamlined system. The migration affects millions of households, and failure to act before individual deadlines may result in loss of financial support.
Transitional Protection Now Limited to Timely Claimants
The DWP confirmed that all individuals previously claiming Working Tax Credit or Child Tax Credit were sent a migration notice, setting out personal deadlines for claiming Universal Credit. Those who responded in time are entitled to transitional protection—a safeguard designed to ensure they do not lose income during the switch.
For instance, a claimant receiving £800 per month in tax credits but eligible for only £600 under Universal Credit would continue to receive the full £800, with a £200 transitional element. This buffer is intended to prevent a sudden drop in income for those adversely affected by eligibility changes in the new system.
According to the DWP, this transitional protection is not automatic and applies only if the claimant acted within the timeline outlined in their migration letter. If the deadline has been missed, recipients must apply through the standard Universal Credit process and will not qualify for this financial cushion.
However, exceptions may be granted in cases of valid delays. Individuals in this situation are advised to contact the Universal Credit Migration Notice Helpline on 0800 169 0328. Requests for deadline extensions must generally be made before the specified cut-off date.
Wider Benefit Overhaul Still Ongoing
The migration of Tax Credits is only the first stage in a broader benefits restructuring process. Four other income-related benefits are scheduled to be phased out in the coming months.
These include Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, and Housing Benefit—with the exception of those in supported or temporary accommodation.
This reform aims to simplify the welfare system by replacing multiple overlapping benefits with a single monthly payment. According to government guidance, affected individuals will be contacted directly by the DWP when it is time for them to transition.
No action is required unless a migration notice is received or personal circumstances change, such as employment status or household composition. The DWP reiterates that it is critical for claimants to respond promptly to all correspondence to avoid a lapse in support.
