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Martin Lewis says millions of people will receive a one-off £500 Working Tax Credit payment next month
Everything you need to know…
The Money Saving Expert has revealed who can expect the £500 one-off payment.
Martin Lewis explains how millions of people can claim a one-off £500 Working Tax Credit payment on this week’s episode of ITV’s The Martin Lewis Money Show.
View Linda asked: “After your Budget last week, my question is, is everyone receiving working tax credits going to get an extra £500 in April or just those who are furloughed?”
Martin explained that anyone who received working tax credits prior to the Budget will receive the boost.
He responded: “If you were getting working tax credits on March 2nd, you will get the £500.
“Whether you are furloughed or not is irrelevant.”
The £500 payment is an alternative payment announced by Rishi Sunak in the Budget on March 3rd that sees the £20 a week Universal Credit maintained.
Instead of the £80 a month boost, working tax claimants will receive a one-off payment of £500.
Speaking at The Commons, 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.”
Most people who already receive Universal Credit are eligible for the payment, including those in receipt of the severe disability premium.
HMRC will contact you by text message or letter in April to confirm the payment. You should receive your payment by April 23rd 2021 if you are eligible.