Coronavirus related benefits changes: Budget 2021

Please note that all the information below is based on our best knowledge at the time. We expect further details to be available shortly and will update where necessary.

Tax credits

The uplift in Working Tax Credit applied in 2020-2021 is replaced with a £500 grant to Working Tax Credit claimants. It is not entirely clear whether this covers in-work claimants who have working tax credit in their maximum amount, but who only receive child tax credit because of the taper. However the budget appears to have allocated sufficient money to cover these claims.

Universal credit

The £20 /week increase in standard allowances will be retained for six months only.

For self-employed claimants, the suspension of the minimum income floor is extended to end July 2021.

Furloughed workers

The Furlough scheme has been extended to the end of September 2021.

Self-Employed Income Support Scheme

This scheme is extended to the end of September 2021.

Private rented accommodation: frozen LHA for housing benefit and universal credit

LHA rates are frozen once again for April 2021.