From September 2, 1.1 million families collecting tax credits will receive their first Cost of Living Payment.
HM Revenue and Customs (HMRC) has confirmed that around 1.1 million claimant families receiving tax credits will receive their first Cost of Living Payment on Friday, September 2, 2022.
This £326 government payment will be deposited into qualifying tax credit-only clients’ bank accounts between September 2 and 7, 2022. The first HMRC payments will be in the region of £360 million.
Chancellor of the Exchequer Nadhim Zahawi stated:
“I know people are anxious about rising prices, so I’m pleased that over a million more low-income people will soon get their first Cost of Living Payment.” We are also preparing possibilities for additional assistance so that the incoming Prime Minister can get started right away.
“These direct payments, along with £400 off most people’s energy bills, tax cuts, and the Household Support Fund, are a crucial component of our £37 billion package of aid for households, which is aimed at those who need it the most.”
HMRC’s Deputy Chief Executive and Second Permanent Secretary, Angela MacDonald, stated:
The first Cost of Living Payment will provide essential financial assistance to eligible tax credit-only claimants across the UK.” Beginning in the winter, qualifying consumers will get a second payment.
“The money will be deposited automatically into bank accounts, so consumers will not have to do anything to receive this additional assistance.”
More than eight million eligible households receiving a means-tested benefit would have received the first of two automatic Cost of Living payments of £326 on July 14. The second means-tested payment of £324 will be made later this year, beginning in the autumn for DWP benefit recipients and beginning in the winter for tax credit-only consumers.
From July 2022, tax credit claimants who also receive benefits from the Department for Work and Pensions will have received their first Cost of Living Payment.
The government’s Cost of Living payments are part of a £37 billion package of assistance that will see millions of low-income households get at least £1,200 this year to help meet growing prices.
Other government assistance, in addition to the Cost of Living Payment, includes:
From October onwards, the government will provide a £400 rebate to help with the expense of energy bills.
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From 20 September, those receiving a qualifying UK disability benefit will be entitled for a £150 Disability Cost of Living Payment.
All of this is on top of changes to the Universal Credit taper rate and work allowances worth £1,000 per year on average for 1.7 million working claimants; a rise in the National Living Wage to £9.50 per hour; and a tax cut for approximately 30 million workers through a rise in National Insurance contribution thresholds.
The government is providing assistance to homes. Customers should check GOV.UK to see if they are eligible for cost of living assistance.
In May 2022, the cost of living payments were revealed. Details of DWP and HMRC payments were disclosed in June, July and August 2022. The most recent payment schedule information is available here, and will be updated on August 26 to show that the first tax credit payments will be made between September 2 and September 7.
Customers who only get tax credits and will receive the first Cost of Living Payment in September 2022 must have been entitled, or later deemed to be entitled, to a payment or an annual award of at least £26, of tax credits on any day between April 26 and May 25, 2022.
Beginning in winter 2022, qualifying tax credit-only consumers will receive a second Cost of Living Payment. In due course, the payment schedule web page will be updated with more exact payment dates.
Payments will be made into the same bank account as the Child Tax Credit for joint claimants where one claimant receives Working Tax Credit and the other claimant receives Child Tax Credit.
Customers are not required to submit an application for this payment. If clients are only eligible for tax credits, HMRC will deposit the Cost of Living Payment into the same bank account as they get their tax credits. Customers who have recently cancelled the bank account into which their tax credits are regularly paid may find that their payment is delayed.
If consumers do not notify HMRC that their bank account has changed, the money will be sent into their old bank account, resulting in the payment being denied. If this occurs, HMRC will notify the consumer through letter that we want updated bank information.
Customers who believe they are eligible but have not received a payment within the specified payment dates should contact us no later than September 16 to provide time for their payment to be processed. We will be unable to give any additional information to clients before this date.
Be cautious of frauds using Cost of Living payments. If someone contacts you concerning Cost of Living Allowance payments and claims to be from HMRC, it could be a fraud.
You are not required to apply for this payment. We will never ask for your bank account information via SMS or email. Allow yourself to not be rushed. Visit GOV.UK and search ‘phishing and scams’ for guidance on recognising scams. GOV.UK has phone numbers and other ways to contact us; search ‘Contact HMRC’ and select ‘tax credits’.
