Working tax credits & Disability element not being uprated 10.1%

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Commanded2bwell
Commanded2bwell Online Community Member Posts: 92 Contributor
in Benefits and income
Recently my WTC payment was reduced by around £2. Doesn't sound like much, but there was no reason given for it. My last year's earnings weren't significant. I asked HRMC to look into it, they promised a callback to explain it, but of course, they never did call back...

I have now received the reduced payment. And while this is annoying and frustrating because of the lack of explanation, what is of greater concern is that my next three forecast payments do not show the announced uprating of 10.1% that pretty much all benefits are supposed to get, in line with inflation as calculated using the Consumer Prices Index. This was a big government announcement and, according to my gov.uk account, it isn't happening for me.

I was wondering if anyone else on WTC has noticed that they're not getting the increase, and what exactly we might do about it? Because you can spend the rest of your mortal life on hold to HMRC only to speak to a human who can't help you, and can only attempt to arrange a callback which then doesn't happen.

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  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    Your payments will continue as they are until the renewal takes place. Tax credits is based on the previous years income unless there's a £2,500 difference in your previous years income.
  • Commanded2bwell
    Commanded2bwell Online Community Member Posts: 92 Contributor
    poppy123456 said:
    Your payments will continue as they are until the renewal takes place. Tax credits is based on the previous years income unless there's a £2,500 difference in your previous years income.

    Thanks Poppy, but they have not continued as they were, they've changed, and there hasn't been a renewal. They were reduced out of the blue, no renewal letter, no explanation, nothing. That alone is concerning. Now that I can also see that the 10.1% uprating hasn't been applied, I'm even more frustrated.

    Am I imagining the 10.1%? Every source I've read says it will apply to Tax Credits, and the governments own 'Benefits Uprating' paper that they published specifically notes that Tax Credits have been unfrozen and are, since 2021, once more calculated in line with inflation.

    It's just that when things like this happen, one starts to question one's appreciation of the facts.

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