More than one million people in receipt of Tax Credits from HM Revenue and Customs (HMRC) are set to receive a cost of living payment worth £301 from Tuesday, May 2. The first part of the £900 means-tested support package for those on Working Tax Credits or Child Tax Credits will be paid until May 9, 2023.
Last week, the Department for Work and Pensions (DWP) delivered 4.8 million payments of £301 to those on income-related benefits including Universal Credit, Pension Credit and Income Support. These payments will continue to be made to a further 3.4m eligible claimants until May 17, 2023.
All cost of living payments will be made automatically, so there’s no need to apply - if you receive a text or email asking you to apply or confirm account details for the payment to go into, it is a scam. Payments for those on Tax Credits will appear in bank statements or online accounts as ‘HMRC COLS’.
HMRC said people might find that their payment is delayed if they have recently closed the bank account into which their Tax Credits are usually paid.
Anyone who believes they are eligible for the £301, but does not receive the money during the payment window is advised to wait until after May 16 to contact HMRC. This is to allow time for their bank, building society or credit union to process the payment.
To receive the first 2023-24 payment from HMRC, people must have received a payment of Tax Credits on any day between January 26 and February 25, 2023.
For joint claimants, where one claimant receives Working Tax Credit and the other claimant receives Child Tax Credit, payments will be made into the same bank account as the Child Tax Credit.
The payment is tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
HMRC also recently sent out letters to all Tax Credits claimants advising them they may be eligible for the £301 payment.
HMRC said: “We also ask our Tax Credit customers to ensure that we have an up-to-date mobile phone number for them, so we can text them to confirm the dates for the autumn 2023 and spring 2024 payments once published.
“We ask them to check that their number is correct by logging into their Personal Tax Account - by searching for ‘HMRC services’ on GOV.UK.”
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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