Tax credit claimants should expect a letter from HMRC this week as the Government department writes to recipients about the latest cost of living payment. Letters should arrive between now and Friday (November 18).
The letter sets out the details of the second payment outlining how much you'll receive and when. If claimants are eligible and receive tax credits, and no other qualifying benefits, it says they will receive a second cost of living payment from HMRC totalling £324 to help with everyday costs.
To get the second cost of living payment of £324, tax credit-only customers must have received (or later receive) for any day 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.
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The Department for Work and Pensions (DWP) will be sending out the second cost of living payment to eligible tax credit-only claimants between Wednesday, November 23, and Wednesday, November 30. So, if you receive tax credits and other qualifying benefits, such as Income Support, the amount you should receive is £324 second payment from the DWP.
However, receiving a letter doesn’t guarantee you are eligible for the payment. HMRC says the letter will "provide information to help customers understand the payment. To receive the payment they must meet the eligibility criteria as outlined in the letter and on GOV.UK".
There is no need to apply for the payment, it should automatically land into the same bank account you receive your tax credits. You should look out for the words ‘HMRC COLS’ on you bank statement. It you haven't received the second payment, but believe you are eligible, you should not contact HMRC before Wednesday, December 7. This is to allow time for your bank, building society or credit union to process the payment.
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.
All the dates you need
When you’ll be paid
| Benefit or tax credits | Cost of Living Payment | When you’ll be paid |
|---|---|---|
| Universal Credit | £326 | Between 14 and 31 July 2022 for most people |
| |
£324 | Between 8 and 23 November 2022 for most people |
| Income-based JSA | £326 | Between 14 and 31 July 2022 for most people |
| |
£324 | Between 8 and 23 November 2022 for most people |
| Income-related ESA | £326 | Between 14 and 31 July 2022 for most people |
| |
£324 | Between 8 and 23 November 2022 for most people |
| Income Support | £326 | Between 14 and 31 July 2022 for most people |
| |
£324 | Between 8 and 23 November 2022 for most people |
| Pension Credit | £326 | Between 14 and 31 July 2022 for most people |
| |
£324 | Between 8 and 23 November 2022 for most people |
| Tax Credits | £326 | Between 2 and 7 September 2022 for most people |
| |
£324 | Between 23 and 30 November 2022 for most people |
The letter also comes with a warning. Beware of scams targeting cost of living payments, it says. Remember, you don’t need to apply for this payment – if you’re eligible, you will be paid automatically. If someone contacts you about cost of living payments saying they’re from HMRC, it might be a scam. Be aware that those claiming the payment will never be asked for bank details by SMS or email. For advice on spotting scams, go to GOV.UK and search ‘phishing and scams’.
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