More than one million families claiming Tax Credits are starting to receive their £324 cost of living payment from today.
This is the second half of the £650 cost of living cash that was promised to households on certain means-tested benefits.
HM Revenue & Customs (HMRC) says the payments should arrive between November 23 and 30. Letters to eligible households were sent out last week.
If you are eligible, the £324 will be sent automatically into the same bank account where you receive Tax Credits.
This means you shouldn’t need to apply for the cash. It will appear on your bank statement as “HMRC COLS”.
If you haven’t received the second payment, but believe you are eligible, you should contact HMRC by December 7.
Who gets the £324 cost of living payment?
Tax Credit households will get the £324 payment if they received – or later receive – for any day between August 26, 2022 and September 25, 2022:
Payment of Tax Credits for the tax year 2022 to 2023
An annual award of at least £26 of tax credits for the tax year 2022 to 2023
If you have a joint claim, where one person 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 you receive Tax Credits and other qualifying benefits, you should have received £324 from the Department for Work and Pensions (DWP).
The DWP paid the second half of the £650 cost of living cash between November 8 and 23, to households claiming:
Income-based Jobseekers Allowance
Income-related Employment and Support Allowance
You might receive your payment later, if you are awarded a qualifying benefit at a later date or you change the account your Tax Credits are paid into.
HMRC has warned that receiving a letter doesn’t guarantee you’re definitely eligible for a cost of living payment.
You must make sure you meet the eligibility criteria above.
If you received the first half of the £650 cost of living payment (worth £324) it doesn’t mean you’re automatically entitled to the second half.
For example, your circumstances might have changed and you may no longer be claiming benefits.