Starting today, February 16, 2024, around 700,000 families across the UK who receive tax credits and no other qualifying benefits will begin receiving their £299 Cost of Living Payment. This payment aims to provide financial support to these households to help with everyday costs amid rising living expenses.
HM Revenue and Customs (HMRC) is overseeing the distribution of these payments to eligible tax credit customers between February 16 and February 22, 2024. This payment is the third of three instalments totalling up to £900 for those eligible and on means-tested benefits such as Universal Credit, Pension Credit, or tax credits in the 2023 to 2024 tax year. It is part of the government’s £104 billion cost of living support package.
More than 7 million eligible households across the UK have already received the £299 payment directly from the Department for Work and Pensions (DWP), with payments scheduled between February 6 and February 22, 2024.
These payments are tax-free, will not count towards the benefit cap, and will not affect existing benefit awards.
Myrtle Lloyd, HMRC’s Director General for Customer Services, emphasized the simplicity of the process, stating, “To make things as simple as possible, the payment is made automatically with no action required from HMRC’s customers.”
Customers receiving the payment from HMRC will see it reflected on their bank statements as ‘HMRC COLS,’ while those receiving it from DWP will observe the payment reference as their National Insurance number followed by ‘DWP COL.’
However, HMRC urges patience for those who have not received the Cost of Living Payment from HMRC between the published payment dates. They advise waiting until after February 23 to allow time for banks, building societies, or credit unions to process the payment.
It’s important for recipients to be vigilant against potential scams related to Cost of Living Payments. HMRC advises that if someone contacts them about this payment, claiming to be from HMRC or DWP, they should exercise caution and verify the authenticity of the communication.
The Cost of Living Payments come in addition to a significant package of support provided by the government since autumn 2021. This includes tax cuts, energy bill support, transportation cost reductions, and various other measures aimed at alleviating financial burdens for households across the UK.
For those in need of additional support, information about eligibility for various cost-of-living schemes is available on the government’s Help for Households website.
As the payments begin to roll out, many families are set to benefit from this additional financial assistance during these challenging times.
