Child Tax Credit and Pensioners

Child Tax Credit and Pensioners – Tax Credit Closure Notice

Tax Credits are ending in April 2025. If you are above State Pension age and receive Tax Credits, you’ll get a managed migration notice about this change and will need to switch to Universal Credit or Pension Credit.   

Which benefit you move to will depend on your work status and circumstances. Generally, if you get: 

• Only Child Tax Credits, you will be asked to move to Pension Credit.  
• Working Tax Credits (with or without Child Tax Credits), you will be asked to move to Universal Credit.  

If you are already entitled to Pension Credit and get Tax Credits you will stay on Pension Credit and have your award adjusted.  

Mixed-age Couples  

If you are a mixed-age couple and getting Working Tax Credits you will be asked to move to Universal Credit. However, if you’re in a ‘protected’ mixed-age couple you will be asked to move to Pension Credit. 

Tax Credit Closure Notice 

Starting in July 2024, if you are above State Pension age and get Child Tax Credit only, you will receive a ‘Tax Credit Closure Notice’. This letter will ask you to apply for Pension Credit by a specific date.  

It’s very important to read the letter carefully. If it tells you to apply for Pension Credit, you must do this yourself, it won’t happen automatically. If you don’t follow the instructions in the letter, your benefits will stop after the deadline.  

If you miss the deadline, you could lose a special top-up amount on your Pension Credit called a ‘Transitional Additional Amount’. (see below)  

If you get Working Tax Credits and/or Child Tax Credits and receive a ‘Universal Credit Migration Notice’ you will be asked to move to Universal Credit. For more details, please read our Universal Credit Migration Notice. 

Transitional Additional Amount  

The Transitional Additional Amount is an extra amount added to your Pension Credit. You may be eligible if you: 

• Apply for Pension Credit within a month of the deadline in your Tax Credit Closure Notice and receive Tax Credits when you switch to Pension Credit.  
• Are already receiving Pension Credit. 

To qualify for the Transitional Additional Amount, you must: 

• Apply for Pension Credit in the same benefit unit (single or couple) as when you received your ‘Tax Credit Closure Notice’.  
• Have a Pension Credit amount that is less than the total of your Pension Credit and Tax Credits on your migration day.  

Your Transitional Additional Amount will stop if there are changes to your household, such as: 

• You are no longer part of a couple or become a couple.  
• You stop being responsible for the children included in your tax credits when you received your ‘Tax Credit Closure Notice’.