Working Tax Credit and Pensioners

Working Tax Credit and Pensioners – Universal Credit Migration 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:

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

If you are already getting 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.  

Universal Credit and Pensioners  

Universal Credit is usually for people of working age and not for those above State Pension age. However, it is now available for people above State Pension age who are moving from Tax Credits.

If you are of working age and receive Universal Credit, you must agree to a Claimant Commitment. This outlines what you will do to find work or increase your earnings if you are already working. For people above State Pension age moving to Universal Credit from Tax Credits, there are no work-related requirements if you are not working or earning below a certain amount. 

To match the rules for Working Tax Credit, Universal Credit will have a minimum earnings threshold. This means you must earn at least what you would make working 16 hours per week at the National Minimum Wage. If your earnings fall below this amount for 3 months after a 12-month grace period, your Universal Credit claim will end.  

Universal Credit Migration Notice  

Starting in August 2024, if you are above State Pension age and get Working Tax Credit and/or Child Tax Credit, you will receive a ‘Universal Credit Migration Notice’. To find out what you need to do after receiving this notice, read our guide Universal Credit Managed Migration Notice.  

If you only get Child Tax Credits and receive a ‘Tax Credit Closure Notice’ you will be asked to move to Pension Credit. For more details, please read our Child Tax Credits guide.