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Liverpool Echo
Liverpool Echo
Business
Lottie Gibbons

DWP sets rule for £301 cost of living payments coming next month

Households have been told to contact HMRC only after a certain date if they haven't received a cost of living payment by May 9.

One million eligible households will receive their first 2023-24 cost-of-living payments from Tuesday May 2. The £301 government payment will be transferred automatically into most customers' bank accounts between May 2 and 9 2023, across the UK.

Only eligible families who receive tax credits and no other means-tested benefits will receive the payment from HMRC. Following confirmation of the payment dates, 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.

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If tax credit customers believe they are eligible but have not received a payment between the published payment dates, they should wait until May 16 2023 at the earliest to contact HMRC, the revenue body said. This is to allow time for their account provider to process the payment.

The payment is tax free, will not count towards the benefit cap, and will not have any impact on existing benefit awards, HMRC added. It is the first of three payments, totalling up to £900 for those eligible in 2023-24.

The payment will show as HMRC COLS in bank and building society accounts, so that they know the money is cost-of-living support.

For tax credit-only customers to be eligible for the £301 payment, they must have received a payment of tax credits in respect of any day in the period January 26 to February 25 2023, or later be found to have been entitled to a payment for this period.

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