Dates for second round of cost of living payment for tax credit claimants announced by UK Government

The second cost of living payment for most tax credit claimants will be distributed towards the end of November.

The £324 sum will be paid automatically to households between November 23 and November 30.

This payment is received by over one million households claiming tax credits and no other means-tested benefits.

In order to be eligible, recipients must have been entitled to, or later found to be entitled to, either a payment of tax credits or an annual award of at least £26 of tax credits between April 26 and May 25 this year.

It follows the first cost of living payment of £326 which was issued by the Department for Work and Pensions (DWP) from July and HM Revenue and Customs (HMRC) from September.

Those who are entitled to both child tax credit and working tax credit will receive a cost of living payment for child tax credit only.

Those who get tax credits from HMRC and a low income benefit from the DWP will get a cost of living payment from DWP only.

It was previously announced that households receiving DWP payments would get their second round of the Cost of Living Payment from November 8 through to November 23.

This includes tax credit claimants who also receive other income-related benefits from DWP.

The payments from HMRC are made afterwards to avoid duplicate payments.

Angela MacDonald, HMRC’s deputy chief executive and second permanent secretary, said: “This second Cost of Living Payment will provide further financial support to eligible tax credit-only claimants across the UK.

“The £324 will be paid automatically into bank accounts, so people don’t need to do anything to receive this extra help.”