Her Majesty's Revenue and Customs (HMRC) will be making the rest of the first instalments of the new cost of living means-tested payment over the coming week.
The payments first started to be issued across the UK on September 2, and the rest of the lump sum is expected to fall into banks by September 7, the Daily Record reports. The £326 payments will be made automatically to those eligible for tax credits, so you don't need to apply for the fund.
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The next round of payments is for people who claim Working Tax Credits or Child Tax Credits. Those who claim Tax Credits and also receive means-tested benefits from the Department for Work and Pensions (DWP) should have received their £326 by now.
HMRC has issued new advice to those who think they are eligible for the payment but have yet to receive the money. Potential claimants are being told to wait until Friday, September 16 2022 before they contact HMRC in order to allow time for their banks to process the payment.
HMRC said: “We won’t be able to provide customers with any further information before this date.”
They also warned previously that there may be a delay in payments for people who have recently closed their bank accounts that their Tax Credits are usually paid into. If they didn't let HMRC know before the bank account shut, the payment may be paid into the old account, and rejected immediately.
If this is the case, HMRC will follow this up by letter to let the claimant know that they need to contact them with their updated bank details.
Who is eligible for the Tax Credits cost of living payment?
To be entitled to the cost of living payment, the individual must:
- have been entitled to a payment or an annual award of at least £26, of Tax Credits for any day in the period April 26, 2022 to May 25, 2022.
For joint claimants, where one person claims Working Tax Credit, and the other individual receives Child Tax Credit, the money will be paid into the same account where the Child Tax Credit is paid into.
The first HMRC payments will total around £360 million and are part of a £37 billion package of support, which will see millions of low-income households receive at least £1,200 this year to help cover rising costs.
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “This first Cost of Living Payment will provide vital financial support for eligible tax credit-only claimants across the UK. A second payment will be made to eligible customers from the winter.
“The money will be paid automatically into bank accounts, so people don't need to do anything to get this extra help.”
Other cost of living support available
As well as the £650 cost of living payment, there are many other types of support available for those who need to claim help. These include:
- £400 discount from the UK Government to help with the cost of energy bills from October onwards.
- £150 Disability Cost of Living Payment from September 20 for those receiving an eligible UK disability benefit.
- £300 Pensioner Cost of Living Payment that will be paid alongside Winter Fuel Payments.
- Changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants.
- A rise in the National Living Wage to £9.50 an hour.
- A tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.
For more information on the amount available for those on Tax Credits, check out the UK Government website here.
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