Tax credits recipients will start receiving their £300 autumn Cost of Living Payments from today.
HMRC is making the payments to eligible tax credit customers across the UK between 10 and 19 November 2023.
Around 840,000 families, who receive tax credits and no other qualifying benefits, will receive the cash to help with everyday costs. To be eligible for the cash, households must have received a payment of tax credits in respect of any day in the period 18 August 2023 to 17 September 2023, or later be paid in respect of any day in this period.
In addition, more than seven million eligible UK households are receiving £300 directly from the Department for Work and Pensions (DWP) between 31 October and 19 November 2023.
The payments are the second of three payments totalling up to £900 for those eligible and on means-tested benefits, such as Universal Credit, Pension Credit, or tax credits, in 2023 to 2024.
John Glen, chief secretary to the Treasury, said: “I know Christmas can be a difficult time, which is why this £300 payment will come as a welcome boost for hundreds of thousands of families. But the best help we can give is halving inflation this year.”
Angela MacDonald, HMRC’s deputy chief executive, said: “The £300 Cost of Living Payment will deliver further financial support to eligible tax credits customers across the UK. Another payment will be made by spring 2024 to those entitled to receive it.”
Paid automatically into bank accounts
The payment from HMRC to tax credits recipients will appear on bank statements as ‘HMRC COLS’. Those receiving the payment from DWP will see the payment reference as their National Insurance number followed by ‘DWP COL’.
The payments will be made automatically into the bank account where eligible households receive their tax credits. They do not need to do anything to receive a payment such as contact HMRC or apply for the payment.
For joint tax credits 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.
If households have not received the Cost of Living Payment from HMRC between the published payment dates, but believe they are eligible, they should wait until after 20 November to contact HMRC. This is to allow time for their bank, building society or credit union to process the payment.
Receiving a previous Cost of Living Payment does not guarantee people will get a future one. Households must meet the individual eligibility criteria for each payment, as published on GOV.UK.
The next Cost of Living Payment will be made by spring 2024. Payment windows and eligibility dates for the remaining payment will be announced in due course.
These payments are tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
The three means-tested Cost of Living Payments for 2023 to 2024, worth up to £900 in total, are being delivered in slightly different amounts (£299/£300/£301), each relating to a specific qualifying period before the payment is made.
The number of payments made by HMRC has reduced over time, when compared with the 2022 to 2023 HMRC payments, as people move from tax credits to Universal Credit and may therefore receive their latest payment from DWP if they are eligible.
