Universal Credit is a newer system, designed to streamline the benefits process and ensure Britons receive ample support. At present, the newer Universal Credit payment is slowly coming into force in replacement of older payments known as legacy benefits. While these vary, one such benefit which is currently claimed by significant numbers of people is Working Tax Credit.
The sum, much like Universal Credit, is made available to individuals who are currently working but are on a low income.
When Universal Credit was given a £20 uplift due to the impact of the pandemic, the issue was raised that those on legacy benefits were not afforded the same level of support.
This was an issue which many people continued to highlight for months, petitioning the Government for further support.
It is now the case the Department for Work and Pensions (DWP) has confirmed there will be support extended to Working Tax Credit, but that it will not come in the form of the £20 uplift.
READ MORE: Interest rates: Warning as Britons urged to ‘be prepared’ for future
“This is well beyond the end of this national lockdown.
“We’ll provide Working Tax Credit claimants with equivalent support for the next six months.
“However, because of the way that system works operationally, we will need to do so with a one-off payment of £500.”
Mr Sunak added, however, the Government’s focus would shift over the course of the remainder of this year.
This, the report suggested, would prevent hundreds of thousands of families from being “plunged into poverty”.
Resistance was also expressed by the Leader of the Opposition, Sir Keir Starmer, in response to the update.
He said: “If this has been a Budget to rebuild the foundations it would have fixed our broken social security system.
“Instead, the Chancellor has been dragged kicking and screaming to extend the £20 uplift to Universal Credit – but only for a few months.”
Britons will not need to apply to receive the £500 payment if they are on Working Tax Credit, nor will they need to take action if on Universal Credit, but must have been claiming on March 2 to be eligible.
HMRC and the DWP, respectively, will be in touch with claimants to confirm their eligibility.