Working Tax Credit

Working Tax Credit has now ended, and no more payments will be made after 5 April 2025. It has been replaced by Universal Credit, a single monthly payment that can help you with your costs relating to housing and bringing up children.

You can claim Universal Credit whether or not you’re working and, unlike Working Tax Credits, there are no limits to the hours you can work on Universal Credit. Find out more in our guide Universal Credit explained.

Universal Credit is made up of a standard allowance, and additional elements if you’re:

• responsible for children
• an unpaid carer
• unable to work due to an illness or disability, and/or
• renting your home.

For more information, see our guide How much is Universal Credit? and GOV.UK – Universal Credit: What you’ll get Opens in a new window

If you had previously been receiving Working Tax Credits you might need some help getting used to budgeting a single monthly payment. You also need to think about changing the payment dates for your bills, rent or mortgage to the day after you’re paid.

Discover how to make the most of your money in our guide Help managing your money if you receive benefits.

Support for childcare costs is more generous on Universal Credit than it was for Working Tax Credit as you might be able to claim back up to 85% of eligible childcare costs. In 2025/26 this is up to a maximum of £1,031.88 for one child, or £1,768.94 for two or more.

In most cases, you must use registered or approved childcare. This can include childminders, playgroups and nurseries.