Exact code to spot when £301 cost of living direct payment lands in bank accounts next month | The Sun
HMRC has confirmed when those on tax credits will receive their first cost of living payment – and you should look out for a specific code.
The £301 free cash, which is being paid between May 2 and 9, is the first instalment of three, totalling £900.
Over one million people claiming working tax credits and child tax credits will get the payment direct into their bank accounts next month.
Millions more, who receive their benefit from the Department for Work and Pensions, will be paid between April 25 and May 17.
Those receiving tax credits and getting their payment from HMRC should look out for a specific code in their statement showing it's the cost of living payment – "HMRC COLS".
The payment is automatic and anyone due one doesn't have to do anything.
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To be eligible, you must have received a tax credit payment between January 26, 2023 and February 25, 2023, or later be found to have been entitled to a payment for this period.
People on tax credits are receiving their payments later to ensure those on other benefits as well as tax credits aren't paid twice.
If you receive tax credits along with a qualifying benefit from DWP you will be paid by the DWP.
What is the £900 cost of living payment and who is eligible?
The £900 cost of living payment is designed to help struggling households with essential costs, such as energy and food.
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The payment, which is tax-free, has been split into three instalments worth £301, £300 and £299.
The second and third instalments are set to be paid in autumn this year for most people and spring 2024 for most people respectively.
All in all, eight million people will receive the payment.
To be eligible, you have to be in receipt of certain benefits though. They are:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Tax Credits (Child Tax Credit and Working Tax Credit)
- Universal Credit
For the previous payments, you had to be entitled, or later found to be entitled to one of these benefits by a certain date.
What other help is on the way?
It's not just the £900 cost of living payment being made this year and in 2024.
There are two other payments worth £150 and £300 that are due to be paid to those with a disability and pensioners too.
In some cases, you might end up qualifying for all three payments, worth £1,350 in total.
For example, if you claim pension credit, attendance allowance and are eligible for the winter fuel payment you'll get the full amount.
The £150 disability payment is set to be paid this summer while the £300 pensioner payment is set to be paid this winter.
The Household Support Fund has also been extended too.
The fund was set up to offer targeted help to certain households struggling with energy bills, the cost of food, or other daily essentials.
It was due to close on March 31, but has since been extended until March 31, 2024.
Check if you are entitled to benefits
If you are not on one of the benefits that qualifies you for the £900 cost of living payment, it's worth checking if you are eligible.
A number of charities have benefits calculators that you can use to work out if you could receive payments.
This includes:
- Turn2Us
- Policy in Practice
- EntitledTo
Before using one of these tools, make sure you have all the relevant paperwork to hand, including bank statements and any information on pensions and existing benefits.
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You'll also have to give information about yourself, including your age and who you live with.
Remember though, the tools only give you an indication of what benefits you might be entitled to.
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