Exact date 1.1million families on tax credits will get first £326 cost of living payment revealed
MILLIONS of people will get extra cash to help them through the cost of living crisis within days.
Over one million families getting tax credits will get the first half of a £650 direct payment.
People on tax credits have had to wait for the first part of the cost of living payment, worth £326.
The government has now confirmed that it will hit bank accounts from September 2.
Around 7million households on benefits like Universal Credit and pension credit have already had the cash.
The direct payments started being made from July 14 and most by the end of that month.
Read more on payments
Anyone getting two benefits – working tax credits or child tax credits – have had to wait longer for the cash.
That’s to avoid duplicate payments where people claim tax credits and another of the qualifying benefits.
If you get tax credits from HMRC and a low income benefit from the Department for Work and Pensions (DWP), you should have had the first cost of living payment already.
Anyone getting tax credits alone will get the payment in September from HMRC.
In total an estimated 8.2million will get the cost of living cash payment.
The second half of the £650 cost of living payment worth £324 will go out in autumn, with an exact date to be confirmed.
Further payments will come this winter including for those with disabilities, pensioners, and every single energy bill payer.
Chancellor Nadhim Zahawi, said: “I know people are really concerned by rising prices so I’m glad that over a million more low earners will shortly receive their first Cost of Living Payment.
“We are also preparing options for further support so the new Prime Minister can hit the ground running.
“Alongside £400 off most people’s energy bills, tax cuts and the Household Support Fund, these direct payments are a very important part of our £37 billion package of help for households, which is targeted at those who need it most.”
The payment will come from HMRC and most people will be paid by September 7, HMRC has said.
Anyone who claims both types of the benefit – child tax credit and working tax credit – will have the payment made into the bank account where child tax credits are paid.
If you’re on tax credits, you don’t need to apply, you should get the payment automatically.
Cost of living payments are tax-free, do not count towards the benefit cap and do not affect the amount you usually get from benefits.
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Who’s eligible for the £650 cost of living payment?
The £650 cash boost was announced by ex-Chancellor Rishi Sunak as part of a package of measures to help people through the current crisis.
Those on the following benefits have already had the first payment of £326:
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Universal Credit
A second part of the payment worth £324 will be made in autumn and an exact date has not yet been confirmed.
Those on tax credits are set to get the first part of the payment from September 2.
There are two types of tax credits:
- Child Tax Credit
- Working Tax Credit
You must have been entitled, or later found to be entitled to a tax credit payment, or annual award of at least £26, between April 26 and May 25 this year.
Tax credit claimants will see the cash going into their bank account directly from this date onwards.
Most people will get it by September 7.
The second part of the payment worth £324 will also come later for people on tax credits.
It’s due in “winter” but an exact date for this has again not been confirmed.
Cost of living payments: what you need to know
- All the key dates for cost of living payments revealed
- Every household will get a £400 cost of living payment to help with energy bills
- See the full list of benefits eligible for £650 cost of living cash
- Here’s free cash you can get if you DON’T qualify for the £650 cost of living payment
- Millions of pensioners will get a £300 cost of living payment this winter
- Disabled Brits will get £150 this September
- Parents can get up to £200 towards school uniform costs