HM Revenue and Customs (HMRC) has confirmed when one million households receiving tax credits only will receive their first instalment of the cost of living payments.
According to the government department, those who receive tax credits and no other means-tested benefit will begin to receive the first payment of £301 from Tuesday, May 2. It will be the first of three payments equating to £900 for eligible claims in 2023/24.
Those expecting the payment should keep an eye on their bank accounts as the payment will come with the reference HMRC COLS. In order to be eligible for the payment, claimants must have received a payment of tax credits in the qualifying period between January 26, 2023, and February 25, 2023 - or must have later to be found eligible for a payment.
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The government has also highlighted that such payments will be made automatically so there is no need for eligible claimants to send in an application. The payments make up a wider support package from the government which is aimed at tackling the worsening cost of living crisis.
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.”
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.”
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