Now that it has been confirmed the energy price cap will soar to £3,549 in October, many families will be on the lookout for financial support during the winter months.
Fortunately, the Department for Work and Pensions (DWP) will begin dishing out the first half of its £650 cost of living payment for Tax Credits recipients from tomorrow (September 2). The payment, worth £326, will make up the first half of the cost of living payment for Tax Credit recipients with the second expected in the winter of this year.
The tax-free payment will have no effect on a claimant's benefit cap or alter their existing benefit awards. Eligible recipients will receive the payment automatically, meaning there will be no need to apply to the DWP or your local council.
Read more: I saved £220 in six months on cheap meals using free app anyone can use
During the first round of cost of living payments for means-tested benefits last July, the government confirmed that more than 7.2 million cost of living payments totalling to £2.4 billion were handed out after the first week.
Who is eligible for the cost of living payment?
You will be eligible for the cost of living payment if you receive any of the following:
- Universal Credit
- Income-based Jobseeker's Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
If you receive any eligible tax credits, September 2 will mark the first-half of your cost of living payment, with a second payment expected in winter of this year. In order to qualify for the cost of living payment under Tax Credits, you must have been entitled, or later found to be entitled, for any day in the period April 26, 2022, to May 25, 2022 to a payment of tax credits or an annual award of at least £26 of tax credits.
If you receive both Child Tax Credit and Working Tax Credit, you will receive a cost of living payment for the Child Tax Credit only. Furthermore, if you receive tax credits from HMRC and a low-income benefit from the DWP, you will only receive the payment from the DWP.
What if I don't receive the payment?
If you believe that you are eligible for the cost of living payment but haven't received it by September 7, you can report a missing Cost of Living Payment to the DWP.
Read next:
