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Wales Online
Wales Online
August Graham, PA & Stephanie Wareham

One million households set to receive cost-of-living payments from next month

One million eligible households receiving tax credits, and no other means-tested benefits, 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 HM Revenue and Customs (HMRC). 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.

Eligible customers do not need to apply or contact HMRC to receive the payment, and people should watch out for any scammers claiming to be offering cost-of-living support and trying to trick them into handing over personal details. The Department for Work and Pensions (DWP) recently announced that eligible households receiving DWP means-tested benefits will receive their first 2023-24 payment between Tuesday, April 25 and Wednesday, May 17.

This includes tax credit claimants who also receive other income-related benefits from the DWP. Including both DWP and HMRC payments, the latest cost-of-living payment will see more than eight million households across the UK receive their £301 cash boost by mid-May 2023.

The payments are part of a package of wider government support announced to tackle the cost-of-living in 2023-24, including a further £300 cost of living payment for eligible families in autumn 2023, with a payment of £299 in spring 2024. Receiving a previous cost-of-living payment does not mean someone will be entitled to a future one. People will need to meet separate eligibility criteria for each payment.

There will also be a £150 disability cost-of-living payment for eligible people with disabilities, to be paid during summer 2023, and a £300 pensioner payment during winter 2023-24. This means that people can receive up to £1,350 in direct payments over the coming financial year, if eligible.

Chief secretary to the Treasury John Glen, said: “Higher prices make life difficult for everyone, which is why our priority is to halve inflation this year. But we are also going further to support those struggling most, with a total package of support worth an average of £3,300 per household this year and next – including up to £900 in direct cash payments starting next month for families receiving tax credits.”

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Angela MacDonald, HMRC’s deputy chief executive and second permanent secretary, said: “The £301 cost-of-living payment will deliver vital financial help to eligible tax credit customers across the UK. Further support will be paid in autumn 2023 and spring 2024 to those entitled to payment.

“HMRC will pay eligible tax credit customers automatically and with no action required from the customer, to make this as simple and helpful as it can possibly be.”

People can check what cost-of-living support is available at gov.uk. 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.

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.

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