£326 cost of living payments for 1.1m families on Tax Credits due over next few days
01.09.2022 - 12:11
/ dailyrecord.co.uk
HM Revenue and Customs (HMRC) confirmed earlier this week that around 1.1 million families receiving Tax Credits will get their first Cost of Living Payment from Friday, September 2. This £326 UK Government payment will be made automatically into eligible Tax Credit-only customers’ bank accounts between September 2 and Wednesday, September 7.
These next round of payments are for people only claiming Working Tax Credits or Child Tax Credits. Tax Credit claimants who also receive benefits from the Department for Work and Pensions (DWP) will have already received their first Cost of Living Payment for £326 from July 2022.
This latest payment means that more than eight million eligible households in receipt of a means-tested benefit will have received the first of two automatic Cost of Living payments. The second means-tested payment of £324 will be issued later this year - from the autumn for DWP benefit claimants, and from the winter for Tax Credit-only customers.
To qualify for the Tax Credits-only £326 Cost of Living Payment due to land in bank accounts within the next week, claimants must have been entitled, or later found to be entitled, to a payment, or an annual award of at least £26, of Tax Credits for any day in the period April 26, 2022 to May 25, 2022.
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.
The first HMRC payments will total around £360 million and are part of a £37 billion package of support, which will see millions of low-income households receive at least £1,200 this year to help cover rising costs.
Commenting on the next phase of the financial support,