Households eligible for tax credits but not other qualifying benefits will receive the final cost of living payment of the year within the next week.
HMRC will distribute the latest cash boost from February 16 to February 22.
Over 7 million eligible UK households have already received the £299 payment directly from the Department for Work and Pensions (DWP) between February 6 and February 22, 2024.
This marks the third of three payments totaling up to £900 for those eligible and on means-tested benefits, including Universal Credit, Pension Credit, or tax credits, for the 2023/24 period. It is part of the government’s £104 billion cost of living support package.
These payments are tax-free, do not count towards the benefit cap, and do not affect existing benefit awards.
Myrtle Lloyd, HMRC Director General for Customer Services, stated: “The £299 Cost of Living Payment will provide further financial assistance to eligible tax credits customers across the UK. The payment is made automatically, simplifying the process for HMRC’s customers.”
The payment from HMRC to tax credits customers will be labeled ‘HMRC COLS’ on bank statements, while payments from DWP will reference the recipient’s National Insurance number followed by ‘DWP COL’.
HMRC will automatically deposit payments into the bank accounts of eligible customers receiving tax credits. No action is required from customers to receive the payment, nor do they need to contact HMRC or apply for it.
Any eligible households that have not received their payment from HMRC by February 23 should contact the organization after that date.