The UK Government has confirmed a new one-off £500 payment for working households receiving tax credits in 2025. Designed to ease living costs, this tax-free support will not affect any other benefits you receive. It’s a welcome boost for families as Working Tax Credit officially ends in April 2025.

A similar payment was issued during the COVID-19 pandemic in 2021, helping millions of households. Now, the 2025 payment will be available across England, Scotland, Wales, and Northern Ireland to support the final transition away from tax credits.

Who Qualifies for the £500 Payment?

You’ll qualify if you or your partner were receiving Working Tax Credit as part of a working household.

👉 Good news:
Even if you only receive Child Tax Credit, you might still be eligible—as long as you met the criteria for Working Tax Credit, even if no WTC payment was made.

There’s no need to apply — HMRC will automatically identify who’s eligible and arrange the payment.

How and When Will You Get the Payment?

• Automatic Payment: No application needed. HMRC will handle everything.

• Notification: You’ll receive a text or letter from HMRC confirming your eligibility before the money arrives.

• Payment Method: Direct deposit into your usual tax credits bank account.

• Timing: Payments are expected to start in spring 2025. Exact dates will be announced closer to the time.

• Bank Statement: Look for references like “HMRC C19 support” or similar.

• Impact on Benefits: The £500 is completely tax-free and won’t affect your existing benefits or future claims.

💡 Tip: Make sure your bank details with HMRC are current to avoid any delays!

Other Related Support You Might Qualify For in 2025

Alongside this £500 bonus, several other forms of support could be available:

• Cost of Living Payments:
  Previous support included payments of £326, £324, £301, £300, and £299 for low-income households.

• Disability Cost of Living Payment:
  If you receive PIP, DLA, or Attendance Allowance, you may qualify for additional help.

• Pensioner Cost of Living Payment:
  Pensioners eligible for the Winter Fuel Payment also received extra support.

• Household Support Fund:
  Councils continue to offer help with essentials like food, energy, and water bills. Some schemes are open to people even if they aren’t on benefits.

🔎 Always check GOV.UK or your local council’s website for up-to-date application info.

FAQs  :

Q: Do I need to apply for the £500 payment?
A: No, the payment is automatic. HMRC will check your eligibility and contact you.

Q: What if I only receive Child Tax Credit?
A: You could still qualify if you met the conditions for Working Tax Credit, even if you didn’t receive a payment.

Q: When will the payment arrive?
A: Payments are expected spring 2025, but exact dates will be confirmed.

Q: Will the £500 affect my other benefits?
A: No, the £500 is tax-free and will not impact your Universal Credit, housing benefit, or any other support.

Q: How will I know if I’m getting it?
A: HMRC will send you a letter or text message confirming your eligibility before paying you.

Q: What should I do now?
A: Just make sure your bank details with HMRC are correct and watch for any communication from them in early 2025.

Final Thoughts

The new £500 one-off payment offers valuable support for working families navigating the end of the tax credit system. With no application process required and payments rolling out in spring 2025, it’s one less thing to worry about during a year of big changes. Plus, additional help may be available through local councils and other government programs — so stay informed and check what’s available in your area!

📢 Stay tuned to GOV.UK and your council’s announcements for more ways to get financial support in 2025!