HMRC has confirmed when households receiving tax credits will get their first £301 cost of living payment.
The first cost of living payment will be made between Tuesday, May 2 and Tuesday, May 9, for those households who are in receipt of tax credits and no other means-tested benefits the UK Government has announced today.
The £301 payment will be made automatically into claimants' bank accounts and will be the first of three payments totalling £900 that will be made this year.
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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.”
For tax credit-only customers to be eligible for the £301 Cost of Living Payment, they must have received a payment of tax credits between January 26 and February 25, 2023.
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, April 25 and Wednesday, May 17. 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.
Over one million households in the UK will receive the Tax Credits payment and over eight million will receive the DWP means tested benefits one.
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.”
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