HMRC Sets Date for First 2023-24 Cost of Living Payment
HM Revenue and Customs (HMRC) has confirmed the first Cost of Living Payment for tax credit-only customers will land from Tuesday, 2 May 2023. Around one million families claiming tax credits—but no other means-tested benefits—will get a £301 cash boost straight into their bank accounts.
Three Payments Total Up to £900 This Year
This initial payment is just the start. Eligible families can expect up to £900 over three instalments during the 2023 to 2024 tax year. HMRC will make these payments automatically—no applications needed.
John Glen, Chief Secretary to the Treasury, said: “Higher prices make life difficult for everyone, which is why our priority is to halve inflation this year. But we are also going further to support those struggling most, with a total package of support worth an average of £3,300 per household this year and next – including up to £900 in direct cash payments starting next month for families receiving tax credits.”
Angela MacDonald, HMRC Deputy Chief Executive, added: “The £301 Cost of Living Payment will deliver vital financial help to eligible tax credit customers across the UK. Further support will be paid in autumn 2023 and spring 2024. HMRC will pay eligible customers automatically and with no action required, to make this as simple and helpful as possible.”
Who Qualifies & How to Spot the Payment
- Eligible customers must have received tax credits between 26 January and 25 February 2023 or been entitled to them during that period.
- No need to apply or contact HMRC—payments come automatically.
- The money will appear in bank accounts labelled “HMRC COLS” so claimants know it’s the Cost of Living payment.
More Help for Millions Across UK
The Department for Work and Pensions (DWP) is also sending cost of living payments between 25 April and 17 May 2023 to those on means-tested benefits, including tax credit claimants receiving other DWP benefits.
The government’s wider support package includes:
- £300 Cost of Living Payment in autumn 2023 and £299 in spring 2024 for eligible families
- £150 Disability Cost of Living Payment in summer 2023 for eligible disabled people
- £300 Pensioner Cost of Living Payment in winter 2023-24
For the most vulnerable, this totals up to £1,350 in direct payments this financial year. By mid-May, over 8 million UK households will have received at least one £301 payment.
For full details on who qualifies and other support, visit Cost of Living Support on GOV.UK.
