Brits currently receiving Tax Credits from the Department of Work and Pensions (DWP) may be eligible to receive extra financial help this autumn.
As part of the government's support package to help vulnerable people cope with the cost of living crisis, millions of Brits will soon see £324 land in their bank accounts. It comes after millions already received the first half of the total £650 cost of living payment last July.
It means that those on Tax Credits who may be struggling to keep up with their finances will get an extra boost to help them with whatever they need, such as shopping for essentials and bills. However, the DWP has set out strict guidelines for who can and can't receive the money.
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Because of this, we've compiled everything you need to know about the second cost of living payment if you currently receive Tax Credits from the DWP.
Who is eligible for the Cost of Living Payment on Tax Credits?
You will automatically be eligible for the second payment if you received (or later receive) for any day from August 26, 2022 to September 25, 2022:
- A payment of tax credits for the tax year 2022 to 2023
- An annual award of at least £26 of tax credits for the tax year 2022 to 2023
It's important to note that if you receive both Child Tax Credit and Working Tax Credit, you will only receive a cost of living payment for the Child Tax Credit alone. Furthermore, if you get tax credits from HMRC as well as a low-income benefit from the DWP, then you will only receive a cost of living payment from the DWP.
When will people on Tax Credits get the second Cost of Living Payment?
If you are eligible for the second cost of living payment and receive Tax Credits, then you should expect to see the payment land in your account shortly after people on the low-income DWP benefits have been paid, according to the government.
This is similar to how the first cost of living payment was rolled out, with those on Tax Credits receiving it later than those receiving other benefits.
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