COVID-19 support scheme: working households receiving tax credits phase 1 and phase 1a
Published 13 October 2022
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Project objectives
Phase 1
On 3 March 2021, the Chancellor announced a one-off payment of £500 to working households in receipt of tax credits, to be delivered by HMRC. This was not a payment of tax credits. The primary objective of making this payment was to continue to support low-income households whose income and earnings were or may have been affected by the economic shock of Covid-19.
The payment was automatically paid into eligible customers’ bank accounts between 19 and 23 April 2021. The bank account used was the account recorded on HMRC’s systems.
There was a communication campaign involving letters being issued and SMS messaging being sent to the selected customers for their awareness of the payment being made prior to it being automatically paid into their bank accounts.
Phase 1a and 1b
On 10 September 2021, a Treasury direction was published which extended the scheme. The extension to the scheme is intended to provide payments to a small number of customers who did not meet the original criteria of having a positive award on 2 March 2021, but who would have had an award for a period including 2 March 2021 based on their finalised 2020 to 2021 tax credits award.
For customers who had actual finalisation of a positive tax credit award by 31 August 2021, the payment was automatically paid into eligible customers’ bank accounts by 30 September 2021. 7,000 of these customers received a payment in September 2021.
There was a further automatic payment (phase 1b) for the self-employed customers who were eligible under the extension once they submitted their tax returns and finalised their tax credit award.
These remaining 1,000 customers were paid in February/March 2022.
This screening equality impact assessment relates to the operational delivery of the above noted policy.
Customer groups affected
Phase 1:
Time limited additional financial support of a one-off payment of £500 to approximately 1.4 million eligible customers in working households who are in receipt of tax credits.
Eligible families claiming Working Tax Credit will benefit from this measure.
Phase 1a and 1b:
Time limited additional financial support of a one-off payment of £500 to approximately 9,000 eligible customers in working households who were not eligible on 2 March 2021 for the one-off payment, but are now eligible for payment after their tax credits award for 2020-21 has been finalised either in the annual reconciliation in July/August or as a result of their Self Assessment return.
What customers needed to do
What customers needed to do as a result of the change
Phase 1
No action required by customer.
Phase 1a and 1b
The customer needed to finalise their tax credit award for 2020 to 2021 to determine whether they are eligible for the £500 payment.
How customers accessed this service
Phase 1
No action required by customer
Phase 1a and 1b
No specific action was required, but customers needed to finalise their tax credit award for 2020 to 2021 using the existing platforms.
When customers needed to do this
Phase 1
No action required by customer.
Phase 1a
31 July 2021 was the first specified date. It was generally expected that all customers will have responded to their renewal notice, if required. This included customers who needed to have provided an estimate by the first specified date.
Phase 1b
31 January 2022 was the second specified date. This was the deadline for those customers who provided an estimate, to provide their actual income. Customers who finalised their reward up to end of April 2022 are being paid manually, and for the remaining <100 customers who may have eligibility between April 22 and April 23, BAU processes have been put in place to ensure that those customers presenting are paid, if they are due that payment.
These were reply by dates, the date that tax credit awards are finalised will have no bearing on these.
A customer’s award can be finalised at any point from now until 5 April 2022, depending on how the renewal was completed, and for some customers with compliance activity or appeals ongoing (<100), up to 5 April 2023.
There was also an in-year finalisation for customers who migrated to Universal Credit before 6 April 2021. Customers will have received their £500 payment either in September 2021 or March 2022, depending on when their awards were finalised.
Assessing the impact
Before the scheme started, we assessed the equality impacts on all the protected characteristic groups in line with the Equality Act and Public Sector Equality Duty and section 75 of the Northern Ireland Act:
- racial groups
- sex
- gender reassignment
- sexual orientation
- pregnancy and maternity
- marriage and civil partnership
- people with dependents and those without
- political opinion (for Northern Ireland only)
There is no evidence to suggest any specific impacts on those customers within any of the protected characteristic groups (listed above).
The following equality impacts were identified:
Disabled and not disabled
Impact on customers
There is no evidence to suggest specific impacts on those customers within this protected characteristic group. Consideration should be given to customers who use screen readers to access digital content. Consideration should be given to potential accessibility issues for customers within this protected characteristic group.
Mitigation provided
No additional actions were expected to be undertaken by customers to claim the additional payment. An Extra Support Team services was available for customers who required support to respond to the renewal notice or finalise their tax credits or Self-Assessment for 2020 to 2021.
Overall, this measure had a positive impact for those in receipt of this additional payment. Letters were issued according to customers’ needs.
Age
Impact on customers
Customer insight suggests some potential differences in digital access among customers in different age groups.
Mitigation implemented
Extra Support Team services were available for customers who required support when responding to the renewal notice or finalising their tax credits or Self-Assessment for 2020 to 2021.
Religion or belief
Some religious groups, such as the Plymouth Brethren, follow rules related to computer use that may affect access to digital services
Proposed mitigation
A manual process was in place for customers who are registered as digitally excluded with HMRC.
People who use different languages (including Welsh language and British Sign Language)
Impact on customers
There will be some impact on customers who require the information in a different language.
Mitigation provided
HMRC sent a bilingual letter to eligible households who had requested contact in the Welsh language.
We also prepared Welsh Social Media communications.
Opportunities to promote equalities
We have considered opportunities to promote equalities and good relations between people in each of the protected characteristic groups and those outside of that group.
We have not identified any opportunities.
A full equality impact assessment is not recommended.