Tax credits recipients to receive £299 cost of living payment

Around 700,000 households, who receive tax credits and no other qualifying benefits, will receive a £299 cost of living payment from Friday.

HM Revenue and Customs (HMRC) is making the payments to eligible tax credits customers across the UK between February 16 and 22 2024.

More than seven million eligible UK households have already received the £299 payment directly from the Department for Work and Pensions (DWP), which is making payments between February 6 and 22.

It is the third of three payments in 2023/24 totalling up to £900 for those eligible and on means-tested benefits, which also include universal credit and pension credit.

Payments from HMRC will appear on bank statements as “HMRC COLS”, referring to cost of living support.

Those receiving the payment from DWP will see the payment reference as their national insurance number followed by “DWP COL”.

Payments are tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

Myrtle Lloyd, HMRC director general for customer services, said: “The £299 cost of living payment will deliver further financial support to eligible tax credits customers across the UK. To make things as simple as possible, the payment is made automatically with no action required from HMRC’s customers.”

If people have not received the payment they were expecting from HMRC between the planned payment dates, but believe they are eligible, they should wait until after February 23 to get in touch, HMRC said. This is to allow time for their bank, building society or credit union to process the payment.

People should also watch out for scams targeting people expecting a payment. If someone makes contact claiming to be from HMRC or DWP, it may be a scam.

As payments are automatic, there is no need to apply for them.

Published: 16/02/2024 by Radio NewsHub