In this section:

  • Universal Credit - information for tax credits customers
  • You are here:
  • Home >
  • Tax credits >
  • Universal Credit - information for tax credits customers

Universal Credit - information for tax credits customers

You may have heard about Universal Credit, which will eventually replace tax credits. Find out more.

On this page:

What is Universal Credit?

Universal Credit is a new single monthly payment for people in work or out of work.

It will be made up of a standard allowance plus other 'elements' - for example for children, childcare, housing and caring. There will also be an element for those with limited capability for work. So the amount you could get will depend on your own circumstances.

If you qualify, your monthly payment will cover everyone in your family who qualifies for support. 'Family' could mean you as a single person for example, or you might also be claiming for a partner and/or children.


How will tax credits and other benefits be affected?

By 2017 Universal Credit will have replaced all of the following:

  • tax credits - both Child Tax Credit and Working Tax Credit
  • income-based Jobseeker’s Allowance
  • income-related Employment and Support Allowance
  • Income Support
  • Housing Benefit

Universal Credit won't replace Child Benefit.


If you get tax credits - what you need to do now

If you are already getting tax credits you do not need to do anything yet.

In the meantime it's important to keep your tax credits claim up to date, so make sure you report any changes in your circumstances.

Tax credits: changes you need to report and when


When does Universal Credit start, and could you be affected?

Universal Credit was introduced in parts of Greater Manchester and Cheshire on 29 April 2013. It is being gradually introduced in other areas.

Most people getting tax credits aren't affected at this stage. Even if you live in one of the areas where Universal Credit is introduced, your tax credits payments will continue as normal.

If your circumstances change

You should continue to report changes in your circumstances that could affect your tax credits as soon as possible.

You will be affected if you start living with a partner who gets Universal Credit. If this happens, you may be able to claim Universal Credit with your new partner, and your tax credits payments will stop. This is because you can't claim Universal Credit and tax credits at the same time. The Tax Credit Office will be told if you start getting Universal Credit. They will stop your tax credits payments and will write to tell you that they have done this.


More information

You can find more information about Universal Credit on the GOV.UK website:

Universal Credit information on GOV.UK (Opens new window)