Thousands of households to get £300 cost-of-living payment

Some 840,000 households who receive tax credits will receive an autumn cost-of-living payment. Credit: PA

Thousands of households will receive a £300 autumn cost-of-living payment from Friday.

Around 840,000 households who receive tax credits and no other qualifying benefits will receive their autumn cost-of-living payment to help with everyday bills.

HM Revenue and Customs (HMRC) is making the payments to eligible tax credits customers across the UK between Friday November 10 and Sunday November 19.

In addition, more than seven million eligible UK households are receiving £300 directly from the Department for Work and Pensions (DWP) between October 31 and November 19.

The payment is the second of three installments 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.

Chief secretary to the Treasury, John Glen. Credit: PA

Chief secretary to the Treasury, John Glen, 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 and second permanent secretary, 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.

“HMRC customers will receive the payment automatically, with no action required from them, to make this as simple as possible.”

The payment from HMRC to tax credits customers will appear on bank statements as HMRC COLS, referencing cost-of-living support.

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

If people have not received the cost-of living payment between the published payment dates, but believe they are eligible, they should wait until after Monday November 20 to contact the revenue body, HMRC said - 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. Recipients must meet the individual eligibility criteria for each payment, as published on gov.uk.

People should also watch out for scammers pretending to be from HMRC or another government body and remember that payment from HMRC will be made automatically into the bank account where eligible customers receive their tax credits.

They do not need to do anything to receive a payment, and do not need to contact HMRC or apply for the money.

Pensioner households will also receive £300. Credit: PA

Pensioner households will also receive £300, which will be paid as a top-up to those eligible for the winter fuel payment in November and December.

Combined with the one-off cost-of-living disability payment earlier this year, some households will receive £1,350 in total.

For tax credits-only customers to be eligible for the £300 cost-of-living payment, they must have received a payment of tax credits in respect of any day in the period August 18 2023 to September 17 2023, or later be paid in respect of any day in this period.

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

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