In a crucial move to support low-income individuals, the UK Government has introduced a special payment of £252 for people earning less than £12,570 per year. If you fall into this income bracket, you may be entitled to this one-off financial boost designed to help you cope with rising living costs. This article explains who is eligible, how to apply, and when the payments are made – so you don’t miss out.
Why This £252 Payment Matters
As energy bills, rent, and food prices continue to stretch household budgets across the UK, many low-income earners are finding it harder than ever to stay afloat. The government recognises this struggle and has put forward this £252 direct payment as a way to provide targeted help.
This payment is not a loan or benefit that needs to be repaid – it is a tax rebate or refund for eligible individuals. Many people are still unaware that they may qualify, especially if they work part-time, are retired, or on certain types of Universal Credit.
Who Can Qualify For The £252 Payment?
Eligibility is based on your total annual income. If you earn less than £12,570, which is the current Personal Allowance threshold, you may be entitled to the full £252.
This includes people who:
- Are employed but work reduced hours
- Are self-employed with low earnings
- Are retired with small pension income
- Are on income-based benefits
- Have no taxable income
You do not need to be claiming Universal Credit or Pension Credit to receive this amount, though those on such benefits might still qualify.
What Is The Personal Allowance?
The Personal Allowance is the amount of income you can earn each tax year without paying income tax. For the 2025/26 tax year, it remains at £12,570.
If your total earnings fall below this threshold, you’re not liable to pay income tax. However, in many cases, tax may still be deducted from your wages or pension if your employer or pension provider does not apply your full tax code correctly.
The £252 refund essentially returns tax that was mistakenly deducted or overpaid.
Is This A Benefit Or A Tax Refund?
This £252 payment is not classified as a benefit. It is a tax rebate issued by HM Revenue and Customs (HMRC). That means you may receive it even if you’re not on benefits or welfare support.
It’s particularly relevant to pensioners or low-income workers who may have paid income tax without realising they were under the threshold.
The good news? You can claim this money easily online or by contacting HMRC directly.
How To Check If You’re Eligible
Before claiming, it’s important to verify whether you fall into the qualifying category. Here’s how:
- Check your total income over the past tax year (April 2024 – April 2025)
- If your total was less than £12,570, and you paid tax, you could be due a refund
- Review your P60 or payslips to see if tax was deducted
You can also use the HMRC tax refund calculator online to estimate whether you’re owed any money.
How To Apply For The £252 Refund
If you think you’re eligible, claiming the refund is straightforward. Here’s what you need to do:
- Visit the official GOV.UK website
- Search for “claim tax refund for overpaid income tax”
- Log in using your Government Gateway account
- Provide details about your income and tax paid
- Submit your application
If you’re unsure how to proceed online, you can call HMRC’s Income Tax helpline and request assistance. They may also send you a paper form to complete.
When Will The Payments Be Made?
Once you apply, HMRC typically processes claims within 4 to 6 weeks. Some users have reported receiving refunds faster when applying online with all correct documents.
You’ll receive your refund either:
- As a direct bank payment (BACS)
- Or by cheque sent to your home address
If you’re owed the full amount of £252, it will be transferred in one go. Partial refunds are also issued in cases where lower tax amounts were deducted.
Do You Need To Be On Benefits To Claim?
No. This payment is not tied to Universal Credit, Pension Credit, or any other DWP benefit. You simply need to have earned less than the Personal Allowance and paid some tax.
However, those who are on benefits and also earn a small income may still qualify for this refund if tax was incorrectly deducted.
This makes the £252 refund accessible to a much wider range of people across the UK.
Common Groups That May Qualify
Several groups are likely to be eligible without realising it. This includes:
- Part-time workers who earn below £1,047 per month
- Pensioners whose pension income is low
- Students doing temporary or low-paid work
- Carers receiving Carer’s Allowance with part-time earnings
- Zero-hours contract workers
If you’re unsure about your income or tax status, it’s always worth checking with HMRC or using a tax calculator tool.
What If You Didn’t Apply Last Year?
If you missed claiming your overpaid tax last year, you can still request a refund going back up to 4 tax years. That means you could potentially receive multiple payments if you were under the threshold and tax was deducted in previous years.
Simply mention this when contacting HMRC or include it when filing your refund request online.
Beware Of Tax Refund Scams
While it’s great news that HMRC is issuing refunds, it has unfortunately led to a rise in phishing scams.
Important Tips:
- HMRC never asks for your bank details by text or email
- Do not click on suspicious links claiming tax refunds
- Always use the official GOV.UK website to submit your claim
If in doubt, contact HMRC’s fraud helpline to verify any communication.
Real Stories From UK Claimants
Many UK residents have successfully claimed the £252 refund and found it a helpful financial boost. For instance:
- Sarah, a part-time retail assistant in Leeds, discovered she was owed £248 after checking her payslips
- John, a retired factory worker in Birmingham, got £252 back after his private pension deducted tax despite his low income
These examples show that even small earnings or part-time jobs can still lead to tax deductions — and now, eligible refunds.
Why You Should Act Quickly
The longer you wait, the more likely it is that you might miss your refund window. While HMRC allows claims for up to four years, it’s easier and faster to claim the most recent refund while the paperwork and records are fresh.
Even if you’re unsure about your eligibility, it’s worth checking. You might be pleasantly surprised.
Final Thoughts
If you’re earning less than £12,570, you could be missing out on £252 that rightfully belongs to you. It’s your money – not a benefit or loan – just a simple tax refund from HMRC. With the cost of living still a major concern across the UK, this payment can provide timely relief.
Whether you’re working part-time, retired, or simply on a low income, take a few minutes to check your eligibility and apply. It’s a quick process with no cost involved and could help ease some of the financial pressure you’re facing.
