Thousands of households across the UK are being urged to check their finances after reports that some HMRC payments worth up to £2,000 a year could stop from September if claimants no longer meet the eligibility rules or fail to report changes in their circumstances.
For many families, tax credit payments have provided valuable financial support for years, helping with childcare costs and topping up household income. However, HMRC regularly reviews claims, and changes such as a rise in earnings, a change in family circumstances or moving to Universal Credit can affect whether payments continue.
If you currently receive financial support from HMRC, September is an important time to make sure your claim is up to date.
Why could payments stop?
HMRC reviews tax credit claims every year to ensure people are still entitled to receive support.
If a claimant’s circumstances have changed and those changes haven’t been reported, payments may be reduced or stopped. In some cases, payments also end because a claimant has been asked to move from tax credits to Universal Credit.
The amount affected will vary from household to household, but some families receive support worth around £2,000 a year, meaning the loss of payments could have a noticeable impact on monthly budgets.
Which payments are affected?
The warning mainly relates to Working Tax Credit and Child Tax Credit, where claims are still active.
Although Universal Credit has replaced tax credits for most new claimants, some households continue to receive tax credits until they are moved across to the newer system.
If you’re one of those households, it’s important to pay attention to any letters or messages from HMRC.
Who is most likely to be affected?
Payments could stop if:
- Your income has increased significantly.
- Your working hours have changed.
- Your household circumstances have changed.
- Your claim has ended because you’re moving to Universal Credit.
- You haven’t responded to requests from HMRC.
Every claim is assessed individually, so not everyone receiving tax credits will be affected.
Why September matters
For many claimants, September follows the annual renewal process, when HMRC checks that information held on tax credit claims is accurate.
If renewal information hasn’t been completed correctly or important changes haven’t been reported, payments can be suspended or stopped until the claim is updated.
This is why advisers encourage people not to ignore letters from HMRC, even if they believe nothing has changed.
What changes should be reported?
Claimants should tell HMRC if there has been a significant change in their circumstances.
Examples include:
- A change in income.
- Starting or leaving a job.
- Changes to working hours.
- A partner moving in or out of the household.
- Changes to childcare arrangements.
- A child leaving full-time education.
Keeping your claim updated helps ensure you’re receiving the correct amount and reduces the risk of overpayments.
Could you be asked to move to Universal Credit?
Some households receiving tax credits are gradually being transferred to Universal Credit as part of the government’s migration programme.
If you receive a migration notice, it’s important to act before the deadline. Ignoring the notice could result in your existing tax credit payments ending before a new Universal Credit claim has been made.
Making your new claim on time helps avoid unnecessary gaps in financial support.
What should you do if your payments stop?
If you notice that a payment hasn’t arrived, don’t immediately assume there has been an error.
First, check whether you’ve recently received any correspondence from HMRC explaining a change to your claim. If you were asked to provide information or complete your renewal, make sure those steps have been completed.
If you’re still unsure why your payments have stopped, contact HMRC as soon as possible to ask for an explanation and check whether any action is required.
Don’t ignore HMRC letters
One of the most common reasons people experience interruptions to their payments is because official letters are overlooked or put aside.
HMRC may ask for updated information, confirmation of household circumstances or details about your income. Responding promptly can help prevent delays and ensure your claim continues without interruption.
Even if you think your circumstances haven’t changed, it’s worth reading every letter carefully.
Why this matters
For many families, tax credits form an important part of their monthly income. Losing payments unexpectedly can make it harder to cover rent, utility bills, childcare costs and everyday essentials.
Taking a few minutes to review your claim and make sure your information is accurate could help avoid unnecessary financial difficulties later in the year.
Final thoughts
The reports about £2,000 HMRC payments stopping in September won’t affect every household, but they are an important reminder to keep your claim up to date. Changes in income, family circumstances or the move from tax credits to Universal Credit can all affect your entitlement.
If you currently receive HMRC support, check any recent letters, make sure your details are correct and respond quickly to any requests for information. Staying on top of your claim is the best way to ensure you continue receiving any financial support you’re entitled to.
