Rishi Sunak announces Brits on tax credits to get £500 one-off benefits payment

Chancellor Rishi Sunak announced Brits who claim Working Tax Credits will get a one-off payment worth £500.

The scheme is similar to the £20 uplift Universal Credit claimants have received during the coronavirus lockdowns.

Speaking in the Budget on Wednesday afternoon, Mr Sunak addressed Britain's economic recovery plan out of the pandemic.

First he said the furlough scheme will be extended until September and unveiled a Help to Grow fund to support small businesses.

Now it has been revealed Brits on Working Tax Credits could benefit from a one-off payment worth £500.

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

He added: "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."

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

  • Universal Credit £20 boost explained as it's extended for six months – including who gets it

New benefits claimants are usually added to Universal Credit rather than Working Tax Credit.

Anyone who hasn't been transferred across will be eligible for the new one-off payments of £500.

Documents in the Budget also confirmed the government will continue to treat Working Tax Credit claimants who have been furloughed, or experienced a temporary reduction in their working hours.

This will allow claimants to remain entitled for Working Tax Credit rather than losing the benefit because the pandemic impacted their earnings.

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However, there is no detail in the speech or the Budget documents about how claimants can apply or when the money will be paid in.

The Universal Credit uplift is paid automatically, so the £500 tax boost can run in the same way.

Other changes to the scheme include a six-month extension of the Universal Credit uplift which will give people an extra £20 per week.

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.

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