HMRC confirms exact month £326 cost of living payment will be paid to households
HMRC has now confirmed the month when Tax Credit households will receive the first half of the cost of living payment.
Altogether the cost of living payment totals to £650 - and the first payment of £326 is due to be paid to eligible benefit claimants in September.
However, HMRC hasn’t yet confirmed which day in September the payments will start.
It also hasn’t said when the second half of the cost of living payment, worth £324, will arrive.
Although it is expected to hit bank accounts in the winter.
What is the cost of living payment?
Around 1.1 million people claiming Tax Credits are expected to get the first cost of living payment.
The payment comes for these households after those claiming other types of means-tested benefits received their first £326 cost of living instalment.
Those who claim Universal Credit, income-related ESA and JSA, Income Support, and Pension Credit started to receive this cash from 14 July.
The second £324 payment is expected to be sent to these households in the autumn.
Although, again, no set date has been announced.
Who is eligible for the payment?
The £650 payment is being awarded to more than eight million households.
It is available to anyone who can claim the following benefits:
- Child Tax Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Universal Credit
- Working Tax Credit
To get the full £650, you need to have qualified for one of these benefits, or later found to be entitled to a payment - between 26 April and 25 May.
Pension Credit applications can be backdated for three months.
18 August is the cut-off for this benefit.
What other help is there?
This payment is not available for everyone who claims benefits.
So it is worth checking if there is other support available.
There is a £150 payment being made to those who claim certain disability benefits and £300 for pensioners in receipt of Winter Fuel Payments.
Every home in England, Scotland and Wales will also receive £400 off their energy bills - spread out over six months from October.
This money is applied to your energy bills and doesn’t need to be paid.
This is in replacement of the £200 "loan-not-loan" that had originally been announced last year by the Chancellor.
The Household Support Fund has also been extended again by another £500 million.
Get in touch with your council to see what help it offers and if you’re eligible for support.