£326 cost of living payment arrives in bank accounts

The first cost of living payment will be landing in the bank accounts of most tax credit claimants from Friday.

Payment of £326 will be made to households between September 2 and September 7.

A separate £150 cost of living payment for disabled people will be paid on September 20.

Who qualifies for the £326 cost of the living support?

In order to receive the £326 cost of living payment, you 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.

Those who get 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.

Will there be further financial support?

There have been calls for the UK Government to announce further measures to support people struggling with cost of living pressures.

However, No 10 has ruled out making any more financial commitments until the next prime minister is in place next week.

Chancellor Nadhim Zahawi has said that options are being prepared on further support for when the next Conservative leader is elected.

“I know people are really concerned about rising prices so I’m glad that over a million more low earners will shortly receive their first Cost of Living Payment,” he said.

“We are also preparing options for further support so the new prime minister can hit the ground running.

“Alongside £400 off most people’s energy bills, tax cuts and the Household Support Fund, these direct payments are a very important part of our £37bn package of help for households, which is targeted at those who need it most.”