Changes to Tax Credits

If you already claim Pension Credit, you can keep claiming it but the amount of benefit you get will be re-calculated. This might include amounts for each child you're responsible for and any necessary adjustment for the loss of Working Tax Credit. It may also include a 'transitional protection' (an extra amount of benefit to make sure that you're not worse off when your Tax Credits end). 

This will all be done automatically, but you'll receive a letter letting you know when your Tax Credits will end and this date must be at least 2 months and one day from the date of the letter. 

You'll receive a letter inviting you to claim Pension Credit. This letter is called a 'Tax Credits Closure Notice'.

You must make your claim by the deadline in the letter to receive your transitional protection. The deadline will be at least 3 months and one day from the day of the letter.

You'll have an extra month after this deadline to make your claim if you need it, and your Pension Credit claim will be backdated to the original deadline. 

You don't have to make a claim, but if you don't, you'll end up losing money as your Child Tax Credit will end the day before your claiming deadline and you won't receive your transitional protection if you miss this deadline. 

There are child additions paid as part of Pension Credit, which means you'll receive an extra amount for each child you're responsible for. Your Housing Benefit shouldn't be affected. 

If you receive Working Tax Credit or both Working Tax Credit and Child Tax Credit, then you'll receive a letter inviting you to apply for Universal Credit. This letter is called a 'Migration Notice'. 

You must make your claim by the deadline in the letter to receive your transitional protection. The deadline will be at least 3 months and one day from the day of the letter. 

You'll have an extra month after this deadline to make your claim if you need it, and your Universal Credit claim will be backdated to the original deadline. 

You don't have to make a claim, or you could choose to claim Pension Credit instead, but you might lose money as your Tax Credits will end the day before the deadline, as will any Housing Benefit you claim. You won't receive your transitional protection if you miss this deadline.

If your Housing Benefit ends because you choose not to claim Universal Credit before the deadline, you'll have to make a new claim for Housing Benefit. 

If you claim Universal Credit and are entitled to Council Tax Reduction, you're assessed under the working-age scheme in your local council rather than the pension-age scheme, which may mean you're not able to claim as much.

The law has changed so people over State Pension age are able to claim Universal Credit. 

If you have a partner and your Tax Credits are for both of you, you should both receive a letter to let you know that Tax Credits are ending. 

If you're part of a mixed age couple – meaning only one of you has reached State Pension age – there are a couple of different situations that could be relevant to you:

If you receive Income Support, Employment and Support Allowance (ESA) or Jobseeker's Allowance (JSA)

You'll be sent a letter inviting you to claim Universal Credit at some point between now and December 2025, along with other working-age claimants.

If you've been claiming Pension Credit or Housing Benefit since before 15 May 2019

In this case, you're considered a 'protected' mixed age couple and you'll be treated as pension-age Tax Credit claimants. This means if you're getting Child Tax Credit only, you'll be invited to claim Pension Credit and if you're entitled to Working Tax Credit, you'll be invited to claim Universal Credit. If you already receive Pension Credit, you'll continue to do so and the amount will be re-calculated when your Tax Credits end.

If you claim Universal Credit, because you're a 'protected' mixed age couple, you reserve the right to make a new claim for Housing Benefit and Pension Credit if your Universal Credit ends, as long as you claim within 3 months of the end of your Universal Credit.

Yes – given that Tax Credits are coming to an end, there have been some changes to the Universal Credit eligibility criteria in certain circumstances:

• If you're invited to claim Universal Credit because your Working Tax Credit is coming to an end, you can claim it – even if you're above State Pension age.
• If you're invited to claim Universal Credit and your savings are over £16,000, any savings over this threshold will be disregarded for the first 12 months that you receive Universal Credit. You'll be treated as if you're receiving an assumed income of up to £174 per calendar month for savings between £6,000 and £16,000. 
• If you're single and over State Pension age or part of a couple and you're both over State Pension age, then you won't have to look for more or better paid work to earn above a certain threshold. However, if you're part of a mixed-aged couple, the working-age partner will be expected to look for work until they meet this earnings threshold (unless they're exempt, for example, because they have a disability or caring responsibilities).

There are some circumstances in which your Universal Credit payments can stop. This may happen if:

• you claimed as a single person and you're now part of a couple
• you claimed as part of a couple and you're now single
• you stop working
• your earnings drop below the £793.17 per calendar month threshold for 3 consecutive months (but there's protection in place to make sure you still receive the Universal Credit payments for the first year of your claim).

Your transitional protection will decrease if there are increases to the benefit you're receiving.

For example, if your Pension Credit or Universal Credit award increases when benefit rates go up in April, this will reduce the transitional protection that you're paid with your Pension Credit or Universal Credit payment. This means the amount of your payment may stay the same overall. Or, if you become entitled to additional elements in your Universal Credit or Pension Credit entitlement (for example, if you become a carer), then your transitional protection will decrease. 

Your transitional protection for Pension Credit will end if:

• you claimed as part of a couple and become single
• you claimed as a single person and become part of a couple 
• you're no longer responsible for any children. 

If you've deferred claiming any pension, including the State Pension, this won't affect your Universal Credit or Pension Credit award for the first year that you claim it. This gives you time to decide what to do with your retirement income.

After this year, you'll be treated as if you're receiving an income from claiming State Pension and any other pensions you have, even if you're still deferring.

If you receive Universal Credit or Pension Credit, your State Pension payments (or lump sum payment) won't increase while you defer.

You might be able to extend the deadline to claim either Universal Credit or Pension Credit in exceptional circumstances. You can make a request to do so before the deadline by calling the phone number on the letter you receive. 

If you're self-employed and claim Universal Credit, you'll have to report your earnings and expenses each month on your online account. You should be able to report these over the phone if you made your original claim over the phone.

There's something called the 'Minimum Income Floor' which means that if you're self-employed you can be treated as earning the National Minimum Wage for a full working week, regardless of your income. This can reduce the amount of Universal Credit you get. This doesn't apply to you if you've reached State Pension age, either as a single person or as a couple. However, it can apply to the working-age person in a mixed age couple, but not for the first year of you receiving Universal Credit.