During the recent Spring Budget statement, Chancellor Rishi Sunak announced an extension to the Universal Credit £20 weekly uplift and a one-off payment in April for households receiving Tax Credits.
Details have now been released advising people on eligibility, when they can expect to receive it and how the payment will impact on other benefits they are currently claiming.
It is a topic Martin Lewis was also asked about on the latest episode of The Money Show Live, his weekly consumer programme, when a viewer called Linda emailed, “is everyone receiving Working Tax Credits going to get an extra £500 in April or just those who are furloughed?”
The consumer champion replied: “If you were getting Working Tax credit on the 2nd of March, I think is the cut-off date, you will get the £500 whether you’re furloughed or not is irrelevant, you will get it.”
HM Revenue and Customs (HMRC) confirmed the full details of the one-off £500 payment which we have outlined below.
Who is eligible for the £500 payment?
HMRC guidance states that eligible individuals include those who, on March 2, 2021, are in receipt of:
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
How do I apply for the one-off payment?
Eligible individuals do not need to apply for the new payment, HMRC will contact them by text message or letter in April 2021 to confirm that they are eligible.
When will I receive the £500 payment?
HMRC said these will start to be issued in the week commencing April 12, 2021 with all payments made by April 23, 2021.
WIll the payment impact other benefits I receive?
No. The one-off payment is being made under the Coronavirus Act 2020 and can be disregarded for Universal Credit and Housing Benefit purposes.
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