A MILLION people receiving tax credits are due to start receiving the first instalment of the £650 cost of living payment.
It comes as part of the government’s package of support announced earlier this year.
1
Around eight million people are entitled to the £650 payment, which is being paid in instalments of £326 and £324.
Around seven million should have received their first instalment in July.
They’ll receive the second one in autumn, although a specific date hasn’t been set yet.
The remaining amount on tax credits, roughly 1.1million will start receiving their first instalment from September 2.
The second portion will be paid “from winter”, although again, the government hasn’t yet announced a specific date.
People on tax credits are receiving their instalments later because the government was worried about people receiving double payments.
This is because HMRC pays people tax credits and the Department for Work and Pensions pays people other benefits like Universal Credit.
But the government is paying tax credit claimants later to avoid paying anyone who gets qualifying benefits paid by the DWP and HMRC two times.
Most read in Money
For those on tax credits getting the payment from next week, it will be paid the same way you usually get your tax credits.
These payments are usually made directly into people’s bank accounts.
And you’ll know it’s the £324 cost of living payment as there will be a code on your statement.
HMRC has now confirmed the code will be ‘CL’ followed by the customers National Insurance (NI) number, followed by 0001AX.
For example, if your NI number is AB123456C, the payment reference would be CLAB123456C0001AX.
What other help can I get?
The £650 cost of living payment is just one of a number of others being handed out to vulnerable households to help them through the cost of living crisis.
Millions of households are set to receive a £400 energy rebate later this year.
The payment will be split into six instalments and paid from October until next March.
Pensioners will get a £300 payment as well, and disabled Brits will get £150 from next week.
On top of the cost of living payments there’s also other support, through the Household Support Fund and Discretionary Fund.
The Household Support Fund is a central pot of money that has been handed out to local councils.
They can then decide how to distribute the money.
In Derby, families were offered £120 free cash to help them through the school term break.
Pensioners were also able to get council tax support.
Coventry City Council was handing out one-off £36 supermarket vouchers.
We previously revealed all the key dates for the cost of living payments.
And free cash you can get hold of if you DON’T qualify for the £650 cost of living payment.
