Lockdown benefits changes and how they may affect you
As Government measures regarding benefits during lockdown are or have already ended the column today is to give readers information about these changes and how they may be affected.
During lockdown claimants of Working Tax Credits could continue to receive the benefit even if they were not working due to either furlough, saw a reduction in their working hours or both.
This protection will end from November 25, 2021.
If you return to work before this date and work your normal pre-lockdown hours then you Working Tax Credit will continue.
If after that you are not able to do this then the normal four week run on continues i.e. you will get Working Tax Credits for four weeks.
If you return to work in your pre-lockdown hours then again your Working Tax Credits will continue. If you do not return to work after the four week period then the claim will end.
If this happens and you reestablish work with either your current or a new employer then you cannot re-start a claim for Working Tax Credits and instead may be entitled to claim Universal Credit.
If you also happen to receive Housing Benefit then this will also end and instead you may qualify for help with rent via Universal Credit.
Typically Working Tax Credits are more generous in a number of ways when compared to
Universal Credit so we would advise readers wherever possible to try and retain entitlement.
We currently do not know if there will be any concessions given to those seeing a drop in annual income in these situations and whether the end of year assessment will take into account lockdown, etc.
So for example, if your furlough earnings mean you may see you owed Working Tax Credits or conversely if you didn't work at all or for long periods this may lead to an overpayment and if so will this need to be repaid or will the government protect claimants in such situations? If this is clarified then we will of course advise readers.
We have also been made aware the Government is launching a £500m winter fund for persons facing hardship, this will be allocated to local authorities who will have discretion to use the money.