Brits claiming tax credits to receive a one-off payment of £500 1 year ago

Brits claiming tax credits to receive a one-off payment of £500

The £20 increase to universal credit has also been extended

Chancellor of the Exchequer Rishi Sunak today announced that Brits working tax credits will receive a one-off payment of £500 as part of his 2021 Budget.


After much infighting about whether or not to keep the £20 boost to universal credit (read: whether or not to cut benefits during a pandemic), the government announced that those receiving UC would not see the extra £20 brought in last year slashed, but instead it will remain in place for another six months.

Those in work receiving tax credits will also see their support extended, but due to how it works operationally, it will come in the form of a one-off payment of £500.

"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,'" Sunak said.


"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.

"And over the course of this year, as the economy begins to recover, we are shifting our resources and focus towards getting people into decent, well-paid jobs."

It might sound generous. But there are many people still falling through the net. StepChange, a debt advice charity, said: "The six month extension of the £20 uplift to Universal Credit will help millions keep their heads above water for now, but will leave them to face huge uncertainty later in the year. The uplift must be made permanent."