HM Revenue and Customs (HMRC) has announced that starting from Tuesday 2 May 2023, eligible families receiving tax credits and no other means-tested benefits will receive the first Cost of Living Payment for the 2023-2024 tax year.
This payment of £301 will be automatically deposited into the majority of customers’ bank accounts across the United Kingdom between Tuesday 2 and Tuesday 9 May 2023.
Only those who receive tax credits and no other means-tested benefits will receive this payment from HMRC. In the 2023-2024 tax year, those eligible will receive a total of up to £900 in three payments.
John Glen, Chief Secretary to the Treasury, stated that the government’s priority is to reduce inflation by 50% this year, and they are offering a support package worth an average of £3,300 per household this year and next, including direct cash payments of up to £900 starting next month.
Additionally, further support will be given in the autumn of 2023 and the spring of 2024 to those who are entitled to payment.
To make it as simple and convenient as possible, HMRC will automatically pay eligible tax credit customers, and there is no need for customers to take any action. The payment will appear as ‘HMRC COLS’ in customers’ bank or building society accounts to indicate that it is a cost of living support.
According to Angela MacDonald, the Deputy Chief Executive and Second Permanent Secretary of HMRC, eligible tax credit customers across the United Kingdom will receive a vital financial boost through the £301 Cost of Living Payment.
Who is eligible for the cost of living payments?
To be eligible for the £301 Cost of Living Payment, tax credit only customers must have received a tax credits payment between 26 January and 25 February 2023, or be found to be entitled to a payment for this period.
According to HM Revenue and Customs (HMRC), starting from Tuesday 2 May 2023, eligible families receiving tax credits and no other means-tested benefits will receive the first Cost of Living Payment for the 2023-2024 tax year.
How do I apply for the cost of living payment?
Eligible customers do not need to apply or contact HMRC to receive the payment.
The first cost of living payment is worth £301 and will be automatically deposited into the majority of customers’ bank accounts across the United Kingdom between Tuesday 2 and Tuesday 9 May 2023.
How much are the cost of living payments?
There are three cost of living payments that are means-tested and they are delivered in varying amounts of £301, £300, and £299.
The different payment values correspond to a particular qualifying period before the payment is released.
This process helps HMRC and DWP to ensure that the support goes to those who are eligible and in need, to verify if the payment is accurate and to detect the payment amount.
Importantly it also helps to minimize fraud by allowing HMRC and DWP to easily track those who have received the payment.
Beware of cost of living payment scams
It is important to be cautious of scams that aim to deceive individuals regarding cost of living payments. In case you receive a communication from someone claiming to be from HMRC about this payment, it is possible that it could be a scam.
It is worth noting that there is no requirement to apply for this payment, and HMRC will not request for your bank details by email or SMS. It is advisable not to be pressured into responding immediately.
To identify potential scams, you can access guidance on GOV.UK by searching for ‘phishing and scams’. Additionally, you can find various ways to get in touch with HMRC by searching for ‘Contact HMRC’ and selecting ‘tax credits’.
