Some Child Benefit and Tax Credits payments due next…

Some Child Benefit and Tax Credits payments due next week will be made on a different day

An upcoming bank holiday in England and Wales next week will see people claiming Tax Credits and Child Benefit receive their payments early. Anyone expecting their benefit on Monday, August 29 will be paid instead on Friday, August 26.

HM Revenue and Customs (HMRC) updated their online guidance for people claiming Working Tax Credits, Child Tax Credits, Child Benefit and Guardian’s Allowance showing that no payments will be made on the English bank holiday. Payments due on Tuesday, August 30 will be as normal.

The Department for Work and Pensions (DWP) has also confirmed that payments for benefits it delivers, including Universal Credit, Personal Independence Payment (PIP) and Attendance Allowance or State Pension, due to be paid on Monday, August 29 will also be made on August 26. DWP recently confirmed that more than one million people claiming Tax Credits are set to receive the first part of the £650 means-tested cost of living payment in September.

DWP updated the UK Government’s official Cost of Living Payment guidance with the revised schedule stating that “most Tax Credits claimants will get the first Cost of Living Payment of £326 in September 2022”. The second payment for £324 will be made in the winter, but no specific timeframe has been released yet.

Below is a quick reminder of eligibility and qualifying criteria for the £650 means-tested cost of living payment for people claiming Tax Credits.

£650 cost of living payment from HMRC if you only claim Tax Credits

To get the cost of living payment of £326 from HMRC, you must have received, or later receive, for any day in the period April 26, 2022 to May 25, 2022:

A payment of Tax Credits
An annual award of at least £26 of Tax Credits

If you get both Child Tax Credit and Working Tax Credit, you will receive a cost of living payment for Child Tax Credit only - this simply means you will not get a double payment.

Remember, payments will be made automatically to eligible claimants in September and winter - once more details have been released we will update this article and share it with members of our Money Saving Scotland Facebook group.

Am I eligible for a cost of living support payment?

Here is everything you need to know about the £326 cost of living payment - with links to full details on all the other support coming this year for people living in Scotland, England and Wales.

You could get up to three different types of payment depending on your circumstances on a particular date or during a particular period:

£650 Cost of Living Payment - if you get a qualifying low income/means-tested benefit or Tax Credits - paid in two instalments of £326 and £324
£150 Disability Cost of Living Payment - if you get a qualifying disability benefit
£300 Pensioner Cost of Living Payment - if you’re entitled to a Winter Fuel Payment for winter 2022 to 2023

Who does not qualify for the £650 payment?

You will not be eligible for a payment if you get New Style Employment and Support Allowance, Contributory Employment and Support Allowance or New Style Jobseeker’s Allowance, unless you get Universal Credit.

Qualifying low income benefits

You may be eligible for a payment of £650 paid in two lump sums of £326 and £324 if you get payments of any of the following:

Universal Credit
income-based Jobseeker’s Allowance (JSA)
income-related Employment and Support Allowance (ESA)
Income Support
Pension Credit
Child Tax Credit
Working Tax Credit

If you have a joint claim with a partner, you will get one payment of £326 and one payment of £324 for your joint claim - if you are eligible.

Backdated Cost of Living payments

Your payment may come later, for example if you are awarded a qualifying benefit at a later date or you change the account your benefit or Tax Credits are paid into.

You will still be paid the Cost of Living Payment automatically and do not need to contact DWP or HMRC.

To keep up to date with the latest benefits news, join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.