Households have been getting up to an extra £20 a week to support them during the pandemic, after the basic element of working tax credit was increased to more than £3,000, but that temporary rise is set to end on April 5 this year.
To help people with the transition, the Government is providing a one-off payment of £500.
HM Revenue & Customs said that if you’re part of a working household that receives tax credits, you may be eligible to receive that lump sum.
It says there is no need to apply for the new payment as thse who are entitled will automatically be contacted via text message or letter.
Those in line for the money, include people who as of March 2 this year receive:
Working tax credit payments
Both working tax credit and child tax credit payments
Child tax credit payments and are eligible for working tax credit but do not get a payment because their income is too high.
Anyone who is eligible should receive their payment by April 23.
The latest statistics show that in 2018/19 there were 3.3 million families claiming child tax credit and/or working tax credit, meaning hundreds of thousands of households could be in line to receive the windfall.
For more information about the payment and to find out whether you receive working tax credit and could be eligible to receive the money, visit www.gov.uk/guidance/new-one-off-500-payment-for-working-households-receiving-tax-credits.