First Cost of Living payment to be paid next month

As many as 1.1 million families receiving tax credits will be getting their first Cost of Living payment from the 2^nd of September 2022.

HMRC has confirmed that this £326 government payment will be paid automatically into eligible tax-credit only customers’ bank accounts between the 2^nd and 7^th of September.

Nadhim Zahawi, Chancellor of the Exchequer, 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.”

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, added, “This first Cost of Living Payment will provide vital financial support for eligible tax credit-only claimants across the UK. A second payment will be made to eligible customers from the winter.

“The money will be paid automatically into bank accounts, so people don’t need to do anything to get this extra help.”

Other government support during this time of financial worry 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.

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