More than one million families claiming tax credits will receive a £301 cost of living payment next month, HMRC has announced.
HMRC has revealed that tax credit claimants will receive their first cost of living payment from May 2, with everyone receiving the payment by May 9.
Only eligible families who receive tax credits and no other means-tested benefits will receive the payment from HMRC.
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 payment will show as ‘HMRC COLS’ in customers’ bank and building society accounts, so that they know the money is cost of living support.
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, added: “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.”
Who is eligible for DWP £301 cost of living payment?
The full list of benefit recipients that qualify for the upcoming Cost of Living payment are those who receive:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
The qualifying period for this payment is between 26 January and 25 February 2023.
To be eligible for the Cost of Living Payment, you need to have been entitled to a payment for one of these benefits between 26 January and 25 February 2023, or payment for an assessment period ending between these dates.
The DWP is also encouraging low-income pensioners not already getting Pension Credit to check their eligibility, as they can still qualify for the £301 Cost of Living Payment if they make a successful backdated Pension Credit application by 19 May.
The exact dates for some payments are yet to be announced by the DWP, but this is when to expect each individual payment over the next year:
- First cost of living payment - £301 – April 25 to May 17
- Disability payment - £150 – Summer 2023
- Second cost of living payment - £300 – Autumn 2023
- Pensioner payment - £300 – Winter 2023
- Third cost of living payment - £299 – Spring 2024
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