1.1 Million Families Set for First Cost of Living Boost from September 2
Millions of UK families on tax credits are getting a lifeline! From September 2, around 1.1 million households will receive their first £326 Cost of Living Payment. HM Revenue and Customs (HMRC) confirmed these cash injections will hit bank accounts between September 2 and 7, totaling roughly £360 million.
Chancellor Promises More Help Amid Rising Prices
Chancellor Nadhim Zahawi said: “I know people are anxious about rising prices, so I’m pleased that over a million more low-income people will soon get their first Cost of Living Payment.” He added that the government is preparing additional support so the incoming Prime Minister can act fast.
Zahawi highlighted the bigger picture, stating these payments are part of a massive £37 billion aid package that also includes a £400 energy bill discount, tax cuts, and the Household Support Fund tailored for the most vulnerable.
More Payments and Assistance on the Way
- This first payment targets tax credit-only claimants.
- A second payment will roll out from winter 2022 automatically—no actions required by recipients.
- Earlier this summer (July 14), over 8 million households receiving means-tested benefits got the first £326 payment, with a £324 follow-up due this autumn.
From October, the energy rebate of £400 kicks in. Plus, from September 20, those on qualifying disability benefits get a £150 Cost of Living payment. On top, there are Universal Credit improvements, a rise in the National Living Wage to £9.50 an hour, and a tax cut for 30 million workers via National Insurance threshold hikes.
Important Info for Claimants: Don’t Miss Out!
If you get tax credits only, you must have been entitled to at least £26 between April 26 and May 25, 2022, to qualify. Payments will automatically go into the same bank account used for your tax credits—no need to apply.
Warning: If you changed your bank account recently and didn’t notify HMRC, your payment could be delayed or returned. HMRC will contact you by letter to update your details if needed.
If you think you’re eligible but haven’t received your payment by September 16, contact HMRC promptly to avoid missing out.
Watch Out For Scams!
Beware of fraudsters claiming to be from HMRC regarding Cost of Living payments. HMRC will never ask for bank details via email or SMS. Always check official GOV.UK guidance on phishing and scams. To contact HMRC safely, search ‘Contact HMRC tax credits’ on GOV.UK.
