HMRC makes cost-of-living payments totalling £375 million

More than 1.1 million families in the UK have received cost-of-living payments from HMRC.

Between 2 September and 7 September, payments of £326 were made to eligible households.

The payments were made to tax credit-only customers’ bank accounts. A second means-tested payment of £324 will be issued later this year – from the autumn for Department for Work and Pensions (DWP) benefit claimants, and from the winter for tax credit-only customers.

Other government support will be available to households to help with the rising cost of living. This support includes:

• a £400 government discount to help with the cost of energy bills from October onwards
• a £300 Pensioner Cost of Living Payment that will be paid alongside Winter Fuel Payments
• a £150 Disability Cost of Living Payment from 20 September for those receiving an eligible UK disability benefit.

Angela MacDonald, Deputy Chief Executive at HMRC, said: ‘This first cost-of-living payment… provides vital financial support for eligible tax credit-only claimants across the UK. A second payment will be made to eligible customers from the winter.

‘The money will be paid automatically into bank accounts, so people don’t need to do anything to get this extra help.’