Families claiming tax credits to receive cost of Living Payment

One million families receiving tax credits will be eligible for the government’s Cost of Living Payment from the 2^nd of May 2023.

The £301 government payment will be paid automatically into eligible bank accounts between the 2^nd and the 9^th of May and it is the first of three payments totalling up to £900.

It will show as ‘HMRC COLS’ in bank and building society accounts.

The tax credit families who should be eligible must have received a payment of tax credits in respect of any day in the period 26^th January to 25^th February 2023, or later be found to have been entitled to a payment for this period.

Chief Secretary to the Treasury, John Glen, said, “Higher prices make life difficult for everyone, which is why our priority is to halve inflation this year.

“But we are also going further to support those struggling most, with a total package of support worth an average of £3,300 per household this year and next – including up to £900 in direct cash payments starting next month for families receiving tax credits.”

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, added, “The £301 Cost of Living Payment will deliver vital financial help to eligible tax credit customers across the UK. Further support will be paid in autumn 2023 and spring 2024 to those entitled to payment. 

“HMRC will pay eligible tax credit customers automatically and with no action required from the customer, to make this as simple and helpful as it can possibly be.”

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