Tax credit claimants to get first instalment of £650 cost of living payment in September | Personal Finance | Finance

HM Revenue and Customers (HMRC) has confirmed it will make the first of the two cost of living payments to eligible tax credit customers in September 2022. Recipients of Working Tax Credit and Child Tax Credit from HMRC are among the households eligible for the support. In its announcement, HMRC outlined the way in which the £650 will be handed out to those who are eligible.

Anyone who is entitled to this support worth £650 do not need to do anything to apply for these payments.

This is because HMRC will pay the cost of living payments automatically to tax credits-only claimants into the bank or building society which their benefits are paid into.

Claimants of tax credits do not need to contact HMRC or directly apply for the separate payments.

Earlier this year, then- Chancellor Rishi Sunak announced a financial support package to help struggling households with rising bills.

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The main feature in this package was a cost of living payment totalling £650, which was for those who claim means-tested benefits.

This payment is being split in half and has been rolled out to claimants of various benefits in recent weeks.

This £650 payment has been established to help those struggling with soaring inflation rates and energy bills.

Inflation in the UK has reached a 40-year high of 9.4 percent and energy bills are expected to hit £3,600 by October.

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Tax credit-only claimants must have received a payment, or an annual award of at least £26, for any day between April 26 2022 to May 25 2022 to get the first September payment.

After the initial £326 lump sum of money, tax credit recipients will get the remaining £326 sometime in winter 2022.

Families or couples with joint tax credit claims, where one recipient receives Working Tax Credit and the other gets Child Tax Credit, will see the £650 paid into the account as the Child Tax Credit.

As part of its cost of living support, the Government is encouraging people to check GOV.UK to see what other payments they are eligible for.

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It should be noted that millions of people in the UK claim other benefit support which is not means-tested so therefore will not get this particular cost of living payment.

Among the DWP benefits and other support which does qualify someone for the extra £650 are:

Attendance allowance

Carer’s allowance

Child benefit

Disability living allowance (DLA)

Contributory, or “new style”, Employment and Support Allowance (ESA)

Guardian’s allowance

Contribution-based, or “new style”, Jobseeker’s Allowance (JSA)

Maternity allowance

Personal Independence payment

State pension

Statutory adoption, maternity, paternity and shared parental pay

Statutory sick pay