As the cost of living crisis continues to bite, more than a million families will be receiving help from the first week of September.
HM Revenue & Customs has confirmed that around 1.1 million claimant families receiving tax credits will get their first Cost of Living Payment from Friday 2 September.
The £326 will be paid automatically into eligible tax credit-only customers’ bank accounts between 2 and 7 September 2022. The first HMRC payments will total around £360 million.
The payment is part of a wider raft of support which includes:
· £400 discount from the Government to help with the cost of energy bills from October onwards
· £150 council tax rebate for council tax bands A-D in England
· £300 Pensioner Cost of Living Payment that will be paid alongside Winter Fuel Payments
· £150 Disability Cost of Living Payment from 20 September for those receiving an eligible UK disability benefit.
As the energy caps are predicted to keep rising into the new year, the Government has indicated there may be more help on the way once the new Prime Minister is in place.
Nadhim Zahawi, Chancellor of the Exchequer, said: “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 Cost of Living payments from the Government are part of a £37 billion package of support, which will see millions of low-income households receive at least £1,200 this year to help cover rising costs.
Warning on potential scams
The Government is offering help for households and customers should check GOV.UK to find out what cost of living support they could be eligible for.
HMRC has also delivered a warning over scams and says people don’t need to apply for this payment and they will never ask for your bank details by SMS or email.
If unsure, people are advised to visit GOV.UK and searching ‘phishing and scams’.
For help and advice on related matters, please contact our team today.