Martin Lewis has clarified the rules around who will get a free £500 handout from the Government in April.
Rishi Sunak announced in the Budget that people on Working Tax Credit will get the one-off payment instead of an ongoing uplift.
In the most recent episode of The Martin Lewis Money Show, the finance expert explained who will qualify.
He was asked by a viewer, called Linda: "After your Budget last week, my question is, is everyone receiving working tax credits going to get an extra £500 in April or just those who are furloughed?"
Martin said anyone who received working tax credits before the Budget will receive the £500 boost.
"If you were getting working tax credits on March 2, you will get the £500," he said.
"Whether you are furloughed or not is irrelevant," he added.
Working tax credit claimants will receive a one-off payment of £500 instead of the £80 a month boost.
The new payment will replace the temporary increase in working tax credits which will end as planned on April 5.
Mr Sunak said: "To support low-income households, the Universal Credit uplift of £20 a week will continue for a further six month."
Most people on benefits now receive Universal Credit instead of tax credits - however, if you haven't migrated across yet, you may be eligible.
This includes those in receipt of the severe disability premium.
You do not need to apply for the support. HMRC said it will contact you by text message or letter in April to confirm your payment.
It's available to those who, on March 2, 2021, received:
- Working tax credit payments
- both working tax credit and child tax credit payments
- Child tax credit payments and are eligible for working tax credit but do not get a payment because their income is too high
If you are eligible, you should receive your payment by April 23, 2021.
