HM Revenue and Customs (HMRC) is writing to over one million people on Tax Credits advising them about the upcoming £301 cost of living payment, due to start arriving in bank accounts between May 2 and 9, 2023. Letters are expected to arrive between April 19 and 24 and will advise claimants that they may be eligible for the first part of the £900 means-tested cost of living support from the UK Government.
The letter also outlines the 2023/24 cost of living payment schedule, which remains unchanged - £300 in the autumn and £299 next spring - with further details on exact payment windows and eligibility to be released nearer the time. If claimants are eligible and receive Working Tax Credits or Child Tax Credits along with a qualifying benefit from the Department for Work and Pensions (DWP), it will be paid between April 25 and May 17.
Payments from HMRC are for those on Tax Credits-only and will appear in bank statements or online accounts as ‘HMRC COLS’.
HMRC said people do not need to do anything to receive a payment. If they are eligible, payment will be made automatically into the bank account where they receive their Tax Credits - they do not need to contact HMRC or apply for the payment.
But it warned that receiving this letter or a previous Cost of Living Payment, doesn’t guarantee a customer will be eligible for this or future payments. They must meet the separate eligibility criteria for each payment, as published on GOV.UK here.
Anyone who believes they are eligible but do not receive a letter or payment, they should wait until after May 16 to contact HMRC. This is to allow time for their bank, building society or credit union to process the payment.
To receive the first 2023-24 payment from HMRC, people must have received a payment of Tax Credits on any day between January 26 and February 25, 2023.
For joint claimants, where one claimant receives Working Tax Credit and the other claimant receives Child Tax Credit, payments will be made into the same bank account as the Child Tax Credit.
HMRC said: “We also ask our Tax Credit customers to ensure that we have an up-to-date mobile phone number for them, so we can text them to confirm the dates for the autumn 2023 and spring 2024 payments once published.
“We ask them to check that their number is correct by logging into their Personal Tax Account – by searching for ‘HMRC services’ on GOV.UK.”
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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