HM Revenue and Customs (HMRC) has announced when Tax Credit claimants can expect the Cost of Living payment.
It will be the second half of the £650 payment being provided by the government to help vulnerable Brits tackle the cost of living crisis. HMRC say it will be paid to more than one million people.
While people receiving Universal Credit and other benefits can expect to receive their second payment of £324 between November 8 and November 23, those receiving Tax Credits will have to wait a little longer.
Instead, they will receive the second payment between November 23 and November 30. The automatic payment will have no effect on your current rewards and should land in your bank account between these dates.
HMRC is making payments shortly after DWP in order to avoid duplicate payments.
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You should expect the payment if you received, or later receive, for any day in the period between August 26, 2022 and September 25, 2022 either a payment of tax credits for the tax year 2022 to 2023, or an annual award of at least £26 of tax credits for the tax year 2022 to 2023.
Furthermore, if you receive both Child Tax Credit and Working Tax Credit, you will only receive a Cost of Living payment from HMRC for the Child Tax Credit only. If you get tax credits from HMRC and a low income benefit from the DWP, then you will only receive a Cost of Living payment from the DWP.
While the deadline for Tax Credit claimants' Cost of Living payment is November 30, you may receive it even later. This may happen if you are awarded a qualifying benefit at a later date or you've changed the account your tax credits are paid into.
Regardless, you will still be paid the Cost of Living payment automatically and do not need to contact the DWP or HMRC in this case.
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said:
“This second Cost of Living Payment will provide further financial support to eligible tax credit-only claimants across the UK.
“The £324 will be paid automatically into bank accounts, so people don't need to do anything to receive this extra help.”
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