Friday, July 19, 2024

One million families claiming tax credits to receive Cost of Living Payment from May

ONE million eligible claimant families receiving tax credits, and no other means-tested benefits, will get the first 2023-24 Cost of Living Payment from Tuesday 2 May 2023, HM Revenue and Customs (HMRC) has confirmed.

The £301 government payment will be paid automatically into most customers’ bank accounts between Tuesday 2 and Tuesday 9 May 2023 across the United Kingdom. Only eligible families who receive tax credits and no other means-tested benefits will receive the payment from HMRC.

This is the first of three payments totalling up to £900 for those eligible in 2023-24.

Chief Secretary to the Treasury, John Glen, said:

“Higher prices make life difficult for everyone, which is why our priority is to halve inflation this year.

“But we are also going further to support those struggling most, with a total package of support worth an average of £3,300 per household this year and next – including up to £900 in direct cash payments starting next month for families receiving tax credits.”

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said:

“The £301 Cost of Living Payment will deliver vital financial help to eligible tax credit customers across the UK. Further support will be paid in autumn 2023 and spring 2024 to those entitled to payment.

“HMRC will pay eligible tax credit customers automatically and with no action required from the customer, to make this as simple and helpful as it can possibly be.”

The payment will show as ‘HMRC COLS’ in customers’ bank and building society accounts, so that they know the money is cost of living support.

For tax credit-only customers to be eligible for the £301 Cost of Living Payment, they must have received a payment of tax credits in respect of any day in the period 26 January to 25 February 2023, or later be found to have been entitled to a payment for this period.

Eligible customers do not need to apply or contact HMRC to receive the payment.

The Department for Work and Pensions (DWP) recently announced that eligible households receiving DWP means-tested benefits will receive their first 2023-24 payment between Tuesday 25 April and Wednesday 17 May. This includes tax credit claimants who also receive other income-related benefits from DWP.

The payments are part of a package of wider government support announced to tackle the cost of living in 2023-24, including:

  • a further £300 Cost of Living Payment for eligible families in autumn 2023, with a payment of £299 in Spring 2024
  • a £150 Disability Cost of Living Payment for eligible disabled people to be paid during summer 2023
  • a £300 Pensioner Cost of Living Payment to be paid during winter 2023-24.

This means that the most vulnerable can receive up to £1,350 in direct payments over the coming financial year if eligible.

Including both DWP and HMRC payments, the latest Cost of Living Payment will see more than 8 million households across the UK receive their £301 cash boost by mid-May 2023.

The government is offering help for households. Customers should check GOV.UK to find out what support they could be eligible for. 

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