Between September 2 and September 7, 2022, this £326 government payment will be automatically deposited into the bank accounts of qualifying tax credit-only consumers.
There will be around £360 million in the initial HMRC payments.
Chancellor of the Exchequer Nadhim Zahawi said:
I’m happy that over a million additional low-income individuals will soon get their first Cost of Living Payment since I know how worried people are about the growing cost of living.
In order for the next Prime Minister to get started quickly, we are also preparing alternatives for further help.
These direct payments are a crucial component of our £37 billion package of assistance for families, which is aimed at those who need it most.
It also includes a $400 reduction in the average household’s energy costs, tax savings, and the Household Support Fund.
Second Permanent Secretary and Deputy Chief Executive of HMRC, Angela MacDonald, stated:
For eligible tax credit-only claimants across the UK, this first Cost of Living Payment will provide crucial financial assistance. Customers who qualify will get a second payment starting in the winter.
People won’t need to take any action to get this additional assistance since the money will be automatically deposited into bank accounts.
With these most recent payments, the first of two automatic Cost of Living Payments of £326 will have been sent to more than eight million eligible families receiving a means-tested benefit as of July 14.
Later this year, starting in the fall for Department for Work and Pensions (DWP) benefit claimants and in the winter for tax credit-only users, a second means-tested payment of £324 will be sent.
Beginning in July 2022, tax credit claimants who also receive DWP benefits will have already received their first Cost of Living Payment.
The government will provide millions of low-income families with at least £1,200 this year as part of a £37 billion assistance package to help them cope with growing prices.
In addition to the Cost of Living Allowance, further government assistance includes:
Beginning in October, the government will provide a £400 reduction to assist with the expense of energy bills.
For English council tax categories A through D, a £150 refund is available.
Along with winter fuel payments, pensioners will receive a £300 cost-of-living payment.
Beginning on September 20, anyone receiving a qualifying UK disability benefit will receive a £150 Disability Cost of Living Payment.
All of this is on top of adjustments to the Universal Credit taper rate, work allowances worth an average of £1,000 annually for 1.7 million claimants who are employed, an increase in the National Living Wage to £9.50 per hour, and a tax break for roughly 30 million workers due to higher National Insurance contribution thresholds.
The government provides assistance to families. Customers should check GOV.UK to see whether they qualify for any cost-of-living assistance.
further information
How to make payments and how to recognise them
When the initial payment from HMRC lands in clients’ bank accounts, there will be a unique identification.
The customer’s National Insurance number (consisting of two letters, six digits, and one letter), followed by “0001AX,” will be the payment reference.
For instance, the payment reference would be “CLAB123456C0001AX” if the National Insurance number was AB123456C.
Payments will be sent into the same bank account as the Child Tax Credit for joint claimants when one claimant gets the Working Tax Credit and the other claimant receives the Child Tax Credit.
For this payment, customers do not need to apply. HMRC will immediately deposit the Cost of Living Payment into the bank account where claimants currently get their tax credits if customers are only qualified to receive tax credits. Customers who recently cancelled the bank account into which their tax credits are typically deposited may discover that their payment is delayed.
Customers’ payments will be refused if HMRC pays into their old bank account because they failed to notify HMRC that their bank account had changed. If this occurs, HMRC will inform the consumer through letter that we need updated bank information.
Schedule for payments
The first tax credit payments will be paid between 2 and 7 September, according to the most recent information on the payment schedule, which will be updated on August 26.
Customers who will only receive tax credits must have been eligible for, or later determined to be eligible for, a payment or an annual award of at least £26 in tax credits for any day between April 26, 2022, and May 25, 2022 in order to be eligible for the first Cost of Living Payment, which will be given in September 2022.
Beginning in the winter of 2022, qualifying tax credit-only consumers will receive a second Cost of Living Payment. Information on the payment schedule will be updated in due course with more precise payment dates.
Message HMRC
Customers should wait until the latest on September 16 to get in touch with us if they think they are qualified but haven’t received a payment between the specified payment dates. This will give us time to process their payment. Before this date, we won’t be able to provide consumers any other details.
On GOV.UK, you can discover phone numbers and other methods to get in touch with HMRC about tax credits.
Background
In May 2022, cost-of-living adjustments were announced.
Payment information from the DWP and HMRC was made available in June, July, and August 2022.
Defend oneself against con artists
Avert frauds that target Cost of Living adjustments. It might be a fraud if someone calls you regarding Cost of Living payments and claims to be from HMRC.
For this payment, you don’t need to apply. By email or SMS, we will never ask for your financial information. Allow yourself to take your time.