The Cost of Living support package has been designed to help over 8 million households in receipt of means tested benefits. The details of Cost of Living Payments due in the 2023-24 tax year were published in 2023 and have recently been updated with details of the final payment.
Eligible recipients will receive up to 3 Cost of Living Payments of £301, £300 and £299 during the course of the current tax-year. This includes those receiving pension credit and these payments will be made separately from other benefit payments. The first payment of £301 was made between April-May 2023 and the second payment of £300 was paid during August-September 2023.
The third payment of £299 was due to be paid in spring 2024. It was confirmed that 700,000 families who receive tax credits and no other qualifying benefits would receive their £299 Cost of Living Payment between 16 and 22 February 2024.
In addition, more than 7 million eligible UK households have already received their £299 payments directly from the Department for Work and Pensions (DWP), these payments were made between 6 and 22 February 2024.
The payment from HMRC to tax credits customers will appear on bank statements as ‘HMRC COLS’, referencing Cost of Living Support. Those receiving the payment from DWP will see the payment reference as their National Insurance number followed by ‘DWP COL’.