Millions of Families to Receive £326 Cost of Living Payment Starting September 2
From September 2, 1.1 million families on tax credits will get a £326 Cost of Living Payment from the government, HM Revenue and Customs (HMRC) confirmed. The payments, part of a wider £37 billion support package, will be automatically deposited into claimants’ bank accounts between September 2 and 7.
Cash Boost to Tackle 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 further support options are being prepared for the new Prime Minister.
This payment is one of several government efforts to ease financial pressure, alongside a £400 discount on energy bills, tax cuts, and the Household Support Fund.
Who Qualifies and When?
- The payment targets 1.1 million tax credit-only claimants who had an award of at least £26 between April 26 and May 25, 2022.
- This is the first of two payments; the second will roll out in winter 2022 automatically.
- Over 8 million households receiving means-tested benefits already got their first £326 payment on July 14, with a second £324 payment due this autumn (for DWP claimants) or winter (for tax credit-only claimants).
Extra Help on the Way
- From October: £400 energy bill rebate for most households.
- From September 20: £150 Disability Cost of Living Payment for qualifying UK disability benefit recipients.
- Additional support includes Universal Credit changes worth on average £1,000 a year for 1.7 million working claimants, a National Living Wage increase to £9.50/hr, and National Insurance cut for 30 million workers.
How to Avoid Scams and Get Help
HMRC warns claimants not to apply or provide bank details for these payments—they are automatic. Beware of scam calls or emails pretending to be HMRC. The department will never ask for bank details via phone or email.
If you haven’t received your payment by September 16 and believe you’re eligible, contact HMRC promptly. If your bank details have changed recently and you didn’t notify HMRC, delays may occur.
For official information, visit GOV.UK and search ‘phishing and scams’ or ‘Contact HMRC’ for tax credits enquiries.
