Brits on tax credits to get £500 one-off benefits payment, Rishi Sunak reveals in the Budget

BRITS who claim Working Tax Credits will get a one-off payment worth £500, Chancellor Rishi Sunak confirmed in today's budget.

The move is designed to echo the £20 uplift that Universal Credit claimants have received throughout the pandemic.

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The Chancellor said that because of the way that the Working Tax Credits system works, people will not be able to get the extra weekly £20.

Instead, everyone who gets the benefit will get a £500 one-off payment.

Mr Sunak said: "To support low-income households, the Universal Credit uplift of £20 a week will continue for a further six months, well beyond the end of this national lockdown

"We’ll provide Working Tax Credit claimants with equivalent support for the next six months.

"Because of the way that system works operationally, we’ll need to do so with a one-off payment of £500."

Lots of people have been switched from Tax Credits to the newer Universal Credit system, which means they would already be getting the uplifts.

New benefits claimants are usually added to Universal Credit rather than Working Tax Credit – unless they are eligible for the severe disability premium.

But there are also plenty of people who are still on the old-style system, and the final deadline for being moved across has been pushed back to 2024.

Anyone who hasn't yet been transferred across will now be eligible for this new one-off payments.

How much does someone on Working Tax Credit receive?

WITH Working Tax Credits you are entitled to a basic amount worth up to £3,040 per year, and you might get extras on top.

The extra elements include:

  • A couple applying together: up to £2,045 a year
  • A single parent: up to £2,045 a year
  • Working at least 30 hours a week: up to £825 a year
  • Disability: up to £3,220 a year
  • Severe disability: up to £1,390 a year (usually on top of the disability payment)
  • Paying for approved childcare: up to £122.50 (one child) or £210 (two or more children) a week

Under the new uplift, claimants will also a receive a one-off £500 payment on top of this.

The budget documents also confirm that the government will continue
to treat Working Tax Credit claimants who have been furloughed, or experienced a temporary reduction in their working hours, as working their normal hours.

This allows these claimants to remain eligible for Working Tax Credit rather than losing the benefit because the pandemic has impacted their earnings.

There is no detail in the speech or the budget documents about how Working Tax Credits claimants can apply or when the money will be paid.

The Universal Credit uplift is paid automatically, so it may be that the £500 tax credit boost is run in the same way.

The Sun has asked the Department for Work and Pensions for more details and will update this story when we know more.

Mr Sunak also revealed in today's Budget:

  • Furlough will be extended right through until September – with 80% of wages paid
  • But employers will have to cough up more cash from July – with 10% in July and 20% in August and September towards the hours their staff do not work
  • The self-employed will get a fourth grant of up to £7,500 and a fifth grant will come within months to get firms through until summer

Universal Credit £20 a week boost extended for six months in today’s Budget.

Rishi Sunak Budget announcement 2021: What did the Chancellor say today, Wednesday, March 3?

Self-employed grants: Rishi Sunak to give 600,000 extra grants up to £7,500.

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