By clicking a retailer link you consent to third-party cookies that track your onward journey. This enables W? to receive an affiliate commission if you make a purchase, which supports our mission to be the UK's consumer champion.
Working tax credit explained
Tax credits ended on 5 April 2025 and have been replaced by Universal Credit. You should have received a migration letter from the Department of Work and Pensions if you are eligible for Universal Credit. You will not be moved automatically and you must claim Universal Credit by the date given in the letter. You can find out more in our guide on Universal Credit.
What was working tax credit?
Working tax credit was a means-tested government payment to help with day-to-day expenses for working people on low incomes. The 'basic element' of working tax credit was worth up to £2,435 in 2024-25, the last tax year in which working tax credit was paid.
To be eligible for the 'basic element' of working tax credit, you had to work a certain number of hours a week (either employed or self-employed) and have an income below a certain level.
If you were single or in a couple and didn't have children, you had to:
- work at least 30 hours a week
- be 25 or older.
If you were disabled and working, or if you had children, you might have been eligible for working tax credit if:
- you worked at least 16 hours a week
- you were 16 or over.
There were also a a number of extra elements that you might have been able to claim, depending on your circumstances.
- Find out more: Child benefit rates and calculator
Working tax credit elements in 2024-25
The table below shows the different working tax credit elements and how much each element was worth in 2024-25, the last tax year for which tax credits were paid.
If you earned above a certain level of income (for example through employment, self-employment, taxable social security benefits, a student dependant grant, or certain miscellaneous income such as a business start-up allowance), the amount of working tax credit you received would reduce.
You might have been eligible for more than one element, depending on your family circumstances.
| Working tax credit element | Maximum amount paid 2024-25 |
|---|---|
| Basic payment | £2,435 a year |
| A couple applying together | Up to £2,500 a year |
| A single parent | Up to £2,500 a year |
| Working at least 30 hours a week | Up to £1,015 a year |
| Disability | Up to £3,935 a year |
| Severe disability | Up to £1,705 a year |
| Approved childcare | Up to £175 a week for one child; up to £300 a week for two or more children |
Does Universal Credit pay the same amount as working tax credit?
The amount you are eligible for with Universal Credit may be different to the amount of working tax credit you received – you can see a full table of allowances in our guide to Universal Credit.
However, if your Universal Credit entitlement is less than your previous tax credits or benefits then you may be eligible for financial protection as part of the move to Universal Credit. This additional amount is known as ‘transitional protection’.
Is eligibility for Universal Credit the same as for working tax credit?
There are some differences in the eligibility criteria for Universal Credit vs working tax credit.
A key difference is that, unlike working tax credit, Universal Credit does not have a fixed number of hours you must work to qualify for it. You can get Universal Credit whether you are in our out of work. However, if you are doing some work, you may be expected to look for more work to continue to qualify for Universal Credit, depending on your ability to do so.
- Find out more: What is Universal Credit?
Need help with your tax return?
Use the jargon-free calculator provided by GoSimpleTax to complete and securely submit your tax return direct to HMRC.
Calculate your tax bill