How tax credits and other benefits affect each other

Child Benefit payments are not affected by any tax credits you get, but other benefits like Housing Benefit are.

If you get tax credits, you may get less:

  • Housing Benefit
  • Income Support
  • income-based Jobseeker’s Allowance
  • income-related Employment and Support Allowance
  • Pension Credit

You cannot get tax credits at the same time as claiming Tax-Free Childcare.

Universal Credit

Your tax credits will end if:

  • you or your partner make a claim for Universal Credit (even if your claim is not approved)
  • you move in with a partner who has made a claim for Universal Credit

After you’ve applied for Universal Credit, you’ll get a letter from HMRC (called your ‘award review’). This will tell you when your tax credits claim ended.

After your tax credits stop, you cannot claim tax credits again.

If your application for Universal Credit is approved, it will take around 5 weeks to get your first Universal Credit payment. If you need help to pay your bills or cover other costs while you wait, you can apply to get an advance.

Other help you might qualify for

If you get tax credits you might also get help with:

  • prescriptions and other health-related costs (you can check if you qualify)
  • vitamins, milk and food if you’re pregnant or have a child under 4
  • maternity costs - you may get a £500 payment (called a ‘Sure Start Maternity Grant’)
  • school costs, including school meals, uniforms, transport and trips
  • funeral costs
  • court fees, legal costs and prison visits
  • home repairs from your council
  • heating and energy costs

You may need to prove you get tax credits to receive extra help.

You can show your Tax Credits award notice as proof. If your tax credits are automatically renewed, you can show your TC 603 R form instead.

Call HM Revenue and Customs if you do not have either of these documents.

How other benefits affect your tax credits

Whether you qualify for tax credits and how much you get depends on your income. Some benefits, including some foreign benefits, count as income.

Disability benefits

If you or your child get disability benefits you may get extra tax credits.