Around 1.1 million claimant families receiving tax credits will get their first Cost of Living Payment from next week, HMRC has confirmed. This £326 government payment will be paid automatically into eligible tax credit-only customers’ bank accounts between September 2 and 7, 2022.
The payment is likely to be welcomed by struggling households up and down the country as the cost of living crisis continues to put strain on finances. Nadhim Zahawi, Chancellor of the Exchequer, said there is expected to be further help put in place in the coming months.
He said: "I know people are really concerned by rising prices so I’m glad that over a million more low earners will shortly receive their first Cost of Living Payment. We are also preparing options for further support so the new Prime Minister can hit the ground running.
"Alongside £400 off most people’s energy bills, tax cuts and the Household Support Fund, these direct payments are a very important part of our £37 billion package of help for households, which is targeted at those who need it most.”
These latest payments mean that more than eight million eligible households in receipt of a means-tested benefit will have received the first of two automatic Cost of Living payments of £326 from July 14. The second means-tested payment of £324 will be issued later this year – from the autumn for DWP benefit claimants, and from the winter for tax credit-only customers.
Tax credit claimants who also receive benefits from the Department for Work and Pensions will have already received their first Cost of Living Payment from July 2022.
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “This first Cost of Living Payment will provide vital financial support for eligible tax credit-only claimants across the UK. A second payment will be made to eligible customers from the winter. The money will be paid automatically into bank accounts, so people don't need to do anything to get this extra help.”
