HMRC Changes – Benefits and Tax Credits Uprating

Working Tax Credit and Child Benefit increased

As part of a number of measures to support the country during the coronavirus (COVID-19) pandemic, the basic element of Working Tax Credit has been increased by £1,045 to £3,040 from 6 April 2020 until 5 April 2021.

The amount a claimant or household will benefit from will depend on their circumstances, including their level of household income. But the increase could mean up to an extra £20 each week.

The government is also uprating Child Benefit, other tax credits rates and thresholds, and Guardian’s Allowance by 1.7% with effect from 6 April 2020. You can read the full list of Rates and Allowances at

These increases came into effect on the 6 April, but individual payment dates will vary depending on circumstances.

You don’t have to take any action and you will receive any increased payments automatically.

Use the tax credits calculator  to get an estimate of how much you could get in tax credits in a 4-week period.

Tax Credit Renewal

This year, HMRC will automatically renew all tax credits claims apart from those identified as high risk. This means that around 3.9 million customers will have their claim automatically renewed. These customers will receive an auto renewal pack and they will only need to contact us if their details differ from the pack.

We will need more information from 150,000 customers and they will be sent a reply required renewal pack and will be expected to complete it in the normal way.

Please be aware, if you are currently a tax credit claimant and you claim Universal Credit, your tax credit award will be closed from the day before your Universal Credit claim is made. Once you have made a Universal Credit claim it is not possible to revert back to tax credits.