One million families claiming tax credits to receive Cost-of-Living Payment from May 2nd, 2023
One million eligible claimant families receiving tax credits, and no other means-tested benefits, will get the first 2023-24 Cost-of-Living Payment from Tuesday 2nd May 2023, HM Revenue and Customs (HMRC) has confirmed.
The £301 government payment will be paid automatically into most customers’ bank accounts between 2nd and 9th May 2023 across the UK. Only eligible families who receive tax credits and no other means-tested benefits will receive the payment from HMRC.
This is the first of three payments totalling up to £900 for those eligible in 2023-24.
The payment will show as ‘HMRC COLS’ in customers’ bank and building society accounts, so that they know the money is cost of living support.
For tax credit-only customers to be eligible for the £301 Cost of Living Payment, they must have received a payment of tax credits in respect of any day in the period 26 January to 25 February 2023, or later be found to have been entitled to a payment for this period.
Eligible customers do not need to apply or contact HMRC to receive the payment.
The Department for Work and Pensions (DWP) recently announced that eligible households receiving DWP means-tested benefits will receive their first 2023-24 payment between Tuesday 25 April and Wednesday 17 May. This includes tax credit claimants who also receive other income-related benefits from DWP.
The payments are part of a package of wider government support to tackle the cost of living in 2023-24, including:
• a £300 Cost of Living Payment for eligible families in autumn 2023, with a payment of £299 in Spring 2024
• a £150 Disability Cost of Living Payment for eligible disabled people to be paid during summer 2023
• a £300 Pensioner Cost of Living Payment to be paid during winter 2023-24.
Including both DWP and HMRC payments, the latest Cost of Living Payment will see more than 8 million households across the UK receive their £301 cash boost by mid-May 2023.For joint 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.
Receiving a previous Cost-of-Living Payment does not mean you will be entitled to a future one. You will need to meet the separate eligibility criteria for each payment. You do not need to apply for this payment.
The government is offering help for households. Check to find out your eligibility.