One million on tax credits to get £326 cost of living payment from this week | The Sun

A MILLION households on tax credits are set to get a cash payment to help with the cost of living this week.

Households claiming tax credits will get the first half of a £650 direct payment in days.

One million people receiving tax credits will receive the first half of the £650 cost of living payment from Friday, September 2.

According to HMRC, all payments will be made by September 7.

The £326 worth of support will be paid in the same way you usually get your tax credits.

The government is paying tax credit claimants later than those getting DWP benefits like Universal Credit to avoid paying anyone twice.


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You must have been entitled, or later found to be entitled to tax credit payments of annual awards between April 26 and May 25 to get the cash.

Anyone who claims both types of the benefit – child tax credit and working tax credit – will have the payment made into the bank account where child tax credits are paid.

If you're on tax credits, you don't need to apply, you should get the payment automatically.

The second instalment worth £324 is due to be paid in the winter for those on tax credits, although the government is yet to confirm a specific date.

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Around seven million households on benefits like Universal Credit and pension credit have already got the cash after payments began from July 14.

Cost of living payments are tax-free, do not count towards the benefit cap and do not affect the amount you usually get from benefits.

In total an estimated 8.2million will get the cost of living cash payment.

Who's eligible for the £650 cost of living payment?

Those on the following benefits have already had the first payment of £326:

  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Pension Credit
  • Universal Credit

A second part of the payment worth £324 will be made in autumn, but an exact date has not yet been confirmed by the government.

Those on tax credits are set to get the first part of the payment from Friday, September 2.

There are two types of tax credits:

  • Child Tax Credit
  • Working Tax Credit

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Tax credit claimants will see the cash going into their bank account directly from this date onwards.

The second part of the payment worth £324 will also come in the winter for people on tax credits.

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