If you are a working household in the UK who receives the tax credit, here is some good news for you. The Government of the UK has announced a one-time financial assistance of £500 to all vulnerable families with low income. The aim is to provide financial and emotional relief to these families.
UK New £500 One-Off Payment is Confirmed
A few years back, the federal government of the UK temporarily raised the amount of the Working Tax Credit by £20 per week, which aimed to provide financial assistance to millions of households across the UK. Years later, on April 5, 2021, the increase came to an end. Years later, the government has decided to increase the amount and provide a one-time payment of £500 to those individuals who were receiving these benefits.
As per the sources, this amount will be provided to those individuals who were either receiving the benefit of Working Tax Credit or whose income was higher, as a result of which they were unable to pay the Working Tax Credit, but were eligible for the benefits.
UK New £500 One-Off Payment: Overview
| Article On | UK New One-Off Payment |
| Administered By | Department of Works and Pension |
| Country | U.K. |
| Beneficiaries | Individuals receiving Working Tax Credit & Child Tax Credit |
| Payment Amount | £500 (one-off payment) |
| Payment Type | Direct deposit from the DWP |
| Benefit Impact | Tax free |
| Payment Date | Autumn, Summer, Spring 2025 |
| Category | Government Aid |
| Official Website | gov.uk |
UK New One-Off Payment: Background
The Government of the UK had previously increased the Working Tax Credit by £20 per week to help the vulnerable income group with this financial assistance. But this reform soon ended on 5th April 2021. Years later, the federal government has come up with a new non-taxable, one-time payment of £500, which will be paid to all the eligible candidates who were receiving Working Tax Credit, or for those whose income was higher, and could not receive the benefit.
UK New £500 One-Off Payment: Eligibility Criteria
You can get the tax-free, one-off payment of £500 if you met either condition in March 2021: –
- Working Tax Credit
- Child Tax Credit and were also eligible for the Working Tax Credit, but did not receive the payment as their income was comparatively higher to receive the benefits.
To avail the benefits of this one-time payment, you don’t need to contact the HMRC (Her Majesty’s Revenue and Customs) or apply for the payment benefits. If you are eligible, you will be contacted directly by HMRC either by a call or a text. The payment in your bank will be reflected as ‘HMRC C19 Support’.
You can get an extra amount above the standard amount if you belong to either of these three categories:
- PIP Disabled People can get some extra benefits, which will help them to cover their medical bills and other such benefits.
- Individuals suffering from severe chronic conditions.
- The Carers can get disability benefits for supporting someone can get some extra benefits.
UK New One-Off Payment: Purpose 2025
This new payment is not for a cash handout, but for the households to meet their daily expenses, such as:
- Rent and Electricity bills
- Home loans and Car loans
- Grocery bills
- Education and Healthcare Bills
- Transportation cost
- Other essential bills, such as purchasing clothes, etc.
The purpose behind this payment is to provide support to people with low income who can get relief from the financial burden.
Process of Receiving the New £500 Payment
Are you worried about filling the application forms or scared of missing deadlines? Now you don’t have to worry about the hassle of filling out forms. You will be surprised to know that it does not have any application procedure, as the eligible candidates will receive the payment automatically in the same bank account as that of the usual DWP benefit.
You just have to ensure that your bank details, such as number, address, and other essential credentials should are updated with DWP. This will ease your payment and avoid unnecessary confusion.
Cost of Living Payment: Schedule 2025
Barring the benefits of one-time payment assistance, the Government of the UK is planning to give the Cost of Living Payment in 2025, which will be distributed during three time intervals, to relieve the families throughout the year: –
| Phase | Payment | Timeline |
| Spring (Phase I) | £301 | March 2025- May 2025 |
| Summer (Phase II) | Up to £200 | July 2025- August 2025 |
| Autumn (Phase III) | Balance Amount | October 2025- December 2025 |
How will this payment help in a Routine Situation?
Let’s see how this extra payment of £500 will help in routine life situations: –
- A disabled person with some extra payment will get help by overcoming the recurring medical expenses or electricity bills.
- A single parent can use this payment to cover the expenditure for education and other costs.
- A retired pensioner couple can spend money on groceries and medicines without caring about savings.
UK New £500 One-Off Payment: Impact
These payments will help the people from:
- Preventing them from the financial burden.
- Relying on debts.
- Helping households avoid poverty.
- Meeting basic needs.
| Official Website | Click Here |
| Homepage | moyle-council.org |
FAQs
Who is eligible for the UK’s New £500 One-Off Payment?
Individuals who have either received the Working Tax Credit or Child Tax Credit in March 2021.
How can I apply for the extra one-off payment?
There is no need to apply for the extra one-off payment as the amount will automatically be credited to your account.
If I want to change my bank details, whom should I contact?
You have to update your bank details with the DWP in order to avoid confusion and unnecessary delays.
