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Universal Credit impact on tax credits explored - how the £500 payment could be affected

It is not possible to receive Universal Credit and tax credits at the same time. If a tax credit claimant starts living with a partner who is receiving Universal Credit their tax credit payments will also stop. In this circumstance, both the claimant and their partner will be treated as joint claimants of Universal Credit instead. Tax credit claimants will be getting a £500 payment (Image: GETTY) Some tax credit claimants may have debt and if they do, their debt will be transferred to DWP when they switch to Universal Credit. Universal Credit payments may then be reduced to cover this debt, depending on the claimant s circumstances.

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