Neil Shaw::People on Working Tax Credits are to get a £500 payment from April, Chancellor Rishi Sunak has announced.
That payment will replace the £80 a month uplift the tax credit claimants currently get, which will end on April 5.
The £20 a week Universal Credit uplift will not be replaced with a one-off payment, and will continue until September.
Mr Sunak said: “To support low-income households, the Universal Credit uplift of £20 a week will continue for a further six months
“We’ll provide working tax credit claimants with equivalent support for the next six months.
“And because of the way that system works operationally, we will need to do so with a one-off payment of £500.”
The two measures are together expected to cost a total of £3billion, with the payments set to be issued April 23, reports The Mirror.
Most people on benefits now receive Universal Credit instead of tax credits – however, the complete switchover is not scheduled until 2024, which means millions of people will still get the one-off sum.
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 you are eligible.
It’s available to those who, on 2 March 2021, received:
If you are eligible, you should receive your payment by April 23, 2021.