Another Tax Credits question

[SpideyMom]

Hiya

Every renewal I have the same battle with my tax credits. However looking at my app this morning it appears from April my TC award is reducing by the uplifted amount for the 20/21 period. I know this was meant to be for 1 year only. I am guessing that that is the case and the uplift amount is being removed this year?

TIA x

I think it's a 'watch this space' situation. HMRC have to proceed with what's in its official budget & policy for the coming financial year (uplift to end), while waiting for its political masters to do the expected U-turn at the 11th hour.

I cant find the official thresholds for tax credits on the government website on UC. However on another website it suggests that the TC basic element is reducing by over £1000. Will have to hold out for official figures

Yes, the uplift was £20pw if I remember rightly (so £1040 per year) but only for the current financial year.

As TheLaughingGenome says, wait and see what's said in the budget as the plan may change. There is pressure to extend the uplift for a bit longer, but also talk of a one-off payment instead.

I thought that was the UC claimants only though? Or are TC bundled into the same thing when considering this? I only ask as UC and TC are significantly different for me which is why I remain on TC

Pretty sure the uplift was the same for TC and UC.

"In the immediate wake of the pandemic, the government announced a temporary increase in Universal Credit (UC) and Working Tax Credit entitlements by £20 per week (£1,040 p.a.), due to last for one year until March 2021 and benefiting around 6 million families per month. "

www.ifs.org.uk/publications/15266

Thanks. Will watch this space then

In case you haven't seen, the £20pw uplift will continue to September.

www.bbc.co.uk/news/live/uk-politics-56252586

Good news. This is the right thing to do.

Will it be a one off payment or carry on before, does anyone know?

Thanks for this info.

It baffles me a little that they can uplift payments temporarily. I know it was due to corona but tax credits hasn't changed or barely since I've been on it from 2014. The additional support it so helpful but to lose £80 a month is going to hit alot of people hard

It’s a one off £500 payment @RunawayBride2

The uplift only applies to people who receive wtc.

Is it a standard amount for everyone

@SpideyMom

Thanks for this info.

It baffles me a little that they can uplift payments temporarily. I know it was due to corona but tax credits hasn't changed or barely since I've been on it from 2014. The additional support it so helpful but to lose £80 a month is going to hit alot of people hard

I think they will struggle to ever remove it. Many people have actually had less expenses during lockdown and have saved money. they should have found other ways to give support to the people who need it the most not just a blanket increase for those on certain benefits. Claimants on the old style ESA and JSA did not receive any increase.

I totally agree @Babyroobs I've been furloughed for many of the last 12 months so although it hasn't bridged the gap, it has certainly helped me with my income being less. Some people's circumstances never changed at all but still got the uplift. That just seems unfair