Just over one million families who receive Tax Credits will get their first cost of living payment from this week.
HMRC has confirmed a payment worth £326 will be paid into the bank accounts of 1.1million people in total between September 2 and 7, 2022.
To get this cash, Tax Credit households must have been entitled, or later found to be entitled, to a payment or an annual award of at least £26 for any day between April 26, 2022 and May 25, 2022.
For joint claimants, where one person receives Working Tax Credit and the other receives Child Tax Credit, payments will be made into the same bank account as the Child Tax Credit benefit.
The payment will contain the reference “CL” followed by your National Insurance number followed by “0001AX”.
The second half of the £650 payment for Tax Credit households - worth £324 - will arrive in the winter, although no set date has been announced.
More than eight million people in total are eligible for the first half of the £650 cost of living payment, which is designed to help families with rising bills.
The first round of £326 payments were sent out from July 14 for those in receipt of means-tested benefits including Universal Credit and Pension Credit.
The second payment - worth £324 - will be issued in the autumn.
Nadhim Zahawi, Chancellor of the Exchequer, said: “I know people are really concerned by rising prices so I’m glad that over a million more low earners will shortly receive their first Cost of Living Payment.
“We are also preparing options for further support so the new Prime Minister can hit the ground running.
“Alongside £400 off most people’s energy bills, tax cuts and the Household Support Fund, these direct payments are a very important part of our £37 billion package of help for households, which is targeted at those who need it most.”
Who is eligible for the £650 cost of living payment?
The £650 payment is only being awarded to those who claim means-tested benefits - so where your income and savings are taken into account.
This includes:
Child Tax Credit
Income-based Jobseeker’s Allowance
Income-related Employment and Support Allowance
Income Support
Pension Credit
Universal Credit
Working Tax Credit
You must have been entitled, or later found to be entitled to a benefit payment, between April 26, 2022 and May 25, 2022 to get the cash.
I'm not eligible for the £650 - what help can I get?
Not everyone who claims benefits will be entitled to the £650 payment - so it is worth checking what other support you can get.
There is a £150 payment being made to those who claim certain disability benefits and £300 for pensioners in receipt of Winter Fuel Payments.
Households in England, Scotland and Wales will also receive £400 off their energy bills, spread out over six months from October.
This money is applied to your energy bills and doesn’t need to be paid.
The Household Support Fund has also been extended again by another £500million.
You need to speak to your council to see what help it offers and if you’re eligible for support.
