Over one million families claiming tax credits to receive second Cost of Living Payment from 23 November

More than one million claimant families receiving tax credits, and no other means-tested benefits, will get their second Cost of Living Payment from Wednesday 23 November 2022, HM Revenue and Customs (HMRC) has confirmed.

This £324 UK Government payment will be paid automatically into most eligible tax credit-only customers’ bank accounts between 23 and 30 November 2022 across the United Kingdom.

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.”

The second payment will see more than 8 million households across the UK receive their £324 cost of living cash boost by 30 November and follows the first cost of living payments of £326, which eligible families received from Department for Work and Pensions (DWP) from July and HMRC from September.

The UK Government recently announced that households receiving DWP benefits will get their second Cost of Living Payment from 8 November continuing through to 23 November. This includes tax credit claimants who also receive other income-related benefits from DWP.

HMRC is making payments shortly after DWP in order to avoid duplicate payments.

This latest payment comes on top of wider UK Government support with the cost of living this autumn and winter, including:

·         the £150 Disability Cost of Living Payment, already paid to around 6 million disabled people

  • more than 8 million pensioner households who will receive an extra one-off £300 Winter Fuel Payment this year 

This is in addition to an extension to the Household Support Fund, which is providing an extra £421 million for use between October 2022 and March 2023 to help vulnerable people with the essentials. A £150 Council Tax rebate was sent earlier this year to those in Council Tax bands A to D in England, creating at least £1,200 in direct support for millions of households.

A £400 reduction on energy bills is also being given to all domestic electricity customers over the coming months, and the Energy Price Guarantee is protecting households from significant rises in their energy bills this winter.

The UK Government is offering help for households. Customers should check GOV.UK to find out what cost of living support they could be eligible for. 

Additional Information:

  • Cost of living payments were announced in May 2022. Details of the first DWP and HMRC payments were publicised in June, July and August 2022. In October 2022 the DWP announced details of their second payment.
  • The latest payment schedule information, which will be updated on 20 October to show that the second HMRC payments will be made between 23 and 30 November, is available here.
  • Tax credit-only customers, who will receive the second payment between 23 and 30 November 2022, must have received a payment or an annual award of at least £26 of tax credits for any day in the period 26 August 2022 to 25 September 2022, or later found to be entitled to tax credits for this period.
  • For joint claimants, where one claimant receives Working Tax Credit and the other claimant receives Child Tax Credit, payments will be made into the same bank account as the Child Tax Credit. 
  • To be eligible for the second DWP payment, families must have been entitled to a payment (or later found to be entitled to a payment) of either:
    • Universal Credit for an assessment period that ended in the period 26 August 2022 to 25 September 2022
    • income-based JSA, income-related ESA, Income Support or Pension Credit for any day in the period 26 August 2022 to 25 September 2022
  • Customers do not need to apply for this payment. If customers are eligible through receiving tax credits only, HMRC will make the Cost of Living Payment automatically into the bank account where claimants already receive their tax credits. Customers might find that their payment is delayed if they have recently closed the bank account their tax credits are usually paid into.
  • If customers have not let HMRC know that their bank account has changed, HMRC will pay the money into their old bank account, meaning the payment will be rejected. If this happens, HMRC will follow this up by letter to the customer, letting them know that we need updated bank details.
  • If tax credit customers believe they are eligible but have not received a payment between the published payment dates, they should wait until 7 December at the earliest to contact HMRC. This is to allow time for their bank, building society or credit union to process the payment. We won’t be able to provide customers with any further information before this date.
  • More than 8 million families on means-tested benefits will receive up to £650 this year, made in two payments. This includes all families entitled to a payment of the following benefits: Universal Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Pension Credit.
  • This payment is tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
  • These payments are being delivered in two slightly different amounts of £326 and £324. The distinct value relates to a specific qualifying period, so it is simpler to determine if a payee received the correct payments, reducing the fraud risk of people who claim not to have had one of the specific two payments, as HMRC and DWP will be able to clearly track those who have.
  • Beware of scams targeting cost of living payments. If someone contacts you about cost of living payments saying they are from HMRC, it might be a scam.
  • You don’t need to apply for this payment. HMRC will never ask for your bank details by SMS or email. Don’t let yourself be rushed. Check advice on spotting scams by visiting GOV.UK and searching ‘phishing and scams’. You can find phone numbers, and other ways to contact us, on GOV.UK – search ‘Contact HMRC’ and choose ‘tax credits’.

Income Maximisation: Are you getting all you are entitled to?

Benefits and grants may help you increase your income. Check if you’re eligible for payments like:

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Scottish Child Payment

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Carers Allowance Supplement

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Disability payments

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Pension Credit Full list and benefits calculators at http://bit.ly/BenefitsAndIncome

Granton Information Centre can make sure you are receiving all the benefits you are entitled to. To make an appointment telephone 0131 551 2459 or 552 0458, or email: appointments@gic.org.uk

Families urged to talk about social security payments

Support highlighted during Challenge Poverty Week

Families and friends have a crucial role to play in ensuring Scotland’s social security payments reach those who need them most.

On a visit to a Citizens Advice Bureau, as part of Challenge Poverty Week, Social Security Minister Ben Macpherson said talking about benefits would help drive take-up and reduce stigma about accessing benefits. The Scottish Government urges people to make sure they get the benefits they are entitled to.

These payments provide support to people on low incomes, people with disabilities, carers, and young people entering the workplace.

During the visit to the Citizens Advice Bureau in Muirhouse, Mr Macpherson met staff and volunteers who provide information and advice about available financial assistance and wider support.

Minister for Social Security Ben Macpherson said: “We are urging as many people as possible to talk to family, friends and other people they know to encourage them to apply for benefits they may be entitled to. We want people to get any support that they are eligible for.

“We know that word of mouth helps to raise awareness of Social Security Scotland’s payments, and those provided by the UK Government which may be needed to access Scottish benefits. We also want anyone who thinks they might be eligible for payments to check what’s available to them.

“While several of our payments are designed for people on low incomes there are also others which provide support to disabled people, young people starting their careers after a period of unemployment, and carers including young carers.

“Social security is a shared investment in people and supports building a fairer, more equal society. The current cost of living crisis shows that any of us could need this support at some point in our lives. That is why it is right that we invest in social security together.

“The Scottish Government is grateful for the impactful role that Citizens Advice advisers play in promoting and supporting access to social security.”

The Scottish Government’s new website provides information on the wide range of advice and financial support available.

Find out more at http://gov.scot/costoflivingsupport…

Citizens Advice Edinburgh Chief Executive Benjamin Napier said: “The Citizens Advice network in Scotland encourages everyone to check that they are receiving the income they are entitled to.

“Every year, millions of pounds of welfare entitlement go unclaimed. At a time of increasing costs and pressures on household budgets, we strongly encourage people to get in touch with their local Citizens Advice Bureau or use our online tools like www.moneymap.scot to see if they could be receiving more money.

“Last year the CAB network across Scotland helped over 174,000 people and 2.4 million people checked our online advice pages. 

“Advice from CABs is free, impartial and confidential. We never charge people for advice and are for everyone regardless of background or circumstance. Social Security Scotland have 12 new benefits and we want to make sure everyone knows their rights of access them.”

#ChallengePovertyWeek

GRANTON Information Centre remains committed to tackling the injustice of poverty in Edinburgh. We do this by:

* Ensure that our service users are getting all the financial assistance they are entitled to by carrying out ‘benefit checks’ and ‘income maximisation’ appointments

* Assisting our clients to make benefits claims and apply for grants on their behalf

* Assisting our service users to challenge decisions if their benefit has been stopped/ sanctioned/ reduced/ refused or overpaid

* Discuss various options with our clients who are struggling to cope with debt, including liaising with lenders and arranging bankruptcies

* Organising food and clothing bank referrals.

We are here to help! Contact us: appointments@gic.org.uk / 0131 551 2459 / 0131 552 0458

#ChallengePovertyWeek

Job opportunity at Granton Information Centre

We are currently looking for a Welfare Rights Adviser to join our organisation.

This role is ideal for someone who is passionate about helping people and understands the importance of individuals having access to free and impartial advice, advocacy and representation on matters relating to benefits, welfare rights and debt issues.

Although experience in a similar role is preferred, full training will be provided and we are looking to hear from anyone who has useful transferable skills and an interest to work in this field (including graduates).

Apply at https://goodmoves.com/…/a4s3z000…/Welfare-Rights-Adviser

Almost 6 million £150 Cost of Living Payments processed for disabled people, says DWP

As of today (30 September) the Department for Work and Pensions has processed almost six million £150 Disability Cost of Living payments worth around £900 million.

Almost 6 million £150 Disability Cost of Living Payments processed for disabled people

This follows the government’s announcement on 20 September that those who had confirmed payment of their disability benefit for 25 May will receive the £150 automatically, with the vast majority to be paid by early October.

The vast majority of eligible claimants who were due to receive the one-off £150 payment from the DWP by early October have now had their payment processed.

The payment will help disabled people with the rising cost of living, acknowledging the higher costs they often face, such as for care and mobility needs.

There will be some cases – such as those who gained entitlement to this payment at a later date or where payments were rejected due to invalid account details – who will not be paid by the beginning of October. These will be paid automatically as soon as possible.

The £150 cost of living payments for disabled people from the government are part of a £37 billion package of support, which will see millions of low income households receive at least £1,200 this year to help cover rising costs.

This also follows the Prime Minister’s announcement of a new Energy Price Guarantee for the next two winters, saving households on average £1,000 a year on their energy bills.

Further information

  • The Energy Price Guarantee (EPG) will apply from 1 October and will discount the unit cost for gas and electricity use. This guarantee, which includes the temporary suspension of green levies, means that from 1 October a typical household will pay no more than £2,500 per year for each of the next two years. This is in addition to the £400 Energy Bill Support Scheme.
  • On top of the EPG and £150 Disability Cost of Living Payment, there is an extra £150 for properties in Council Tax bands A-D in England. On top of this, disabled people on low incomes may also be eligible for the other Cost of Living payments totalling up to £650 – households in receipt of a means-tested benefit received the first of the two automatic Cost of Living payments of £326 from 14 July. The second means-tested payment of £324 will be issued later this year.

Eligibility

  • Those who receive the following disability benefits may be eligible for the one-off payment of £150 in September: Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Scottish Disability Benefits (Adult Disability Payment and Child Disability Payment), Armed Forces Independence Payment, Constant Attendance Allowance and War Pension Mobility Supplement.
  • The majority of those who had confirmed payment of their disability benefit for 25 May have now been paid. For those who have still to be paid, are awaiting confirmation of their disability benefits on 25 May, or who are waiting to be assessed for eligibility to receive disability benefits, the process may take longer but payments will still be automatic.
  • You must have received a payment (or later receive a payment) of one of the qualifying benefits for 25 May 2022 to get the payment.

Cost of living support

Chancellor Kwasi Kwarteng ‘to get Britain working again’

  • The Chancellor is expected to announce reforms to the welfare system that will encourage thousands more into work and to boost their earnings, helping grow the economy.
  • Around 120,000 more benefit claimants will be asked to take active steps to seek more and better paid work, or face having their benefits reduced.
  • Over 50s to get more support to find work, boosting economic growth.

The Chancellor is this week expected to announce changes to Britain’s welfare system that will help boost people’s earnings, get them into work and support economic growth.

Changes to Universal Credit expected to be announced later this week will require benefit claimants working up to 15 hours a week at National Living Wage to meet regularly with their Work Coach and take active steps to increase their earnings or face having their benefits reduced.

This gradual expansion is an increase from the 12-hour threshold and will bring an additional 120,000 benefit claimants into the Intensive Work Search Regime.

With more than 1.2 million job vacancies across the UK, Work Coaches will set clear expectations with claimants and make sure they stick to their commitments. These commitments could include applying for jobs, attending interviews or increasing their hours. People who don’t fulfil their job-search commitments without good reason could have their benefits reduced in line with existing benefit sanctions policy.

Eligible claimants over 50 years old, including new claimants and the long-term unemployed, will also get extra support from Work Coaches. The newly unemployed will get 9 months of targeted sessions, and people who are long-term unemployed will receive a booster session followed by 3 months of intensive employment support.

Rising economic inactivity in the over 50s is contributing to shortages in the jobs market, driving up inflation and limiting growth. Returning to pre-pandemic activity rates in the over 50s could boost the level of GDP by up to 1 percentage point.

Chancellor Kwasi Kwarteng said: “Our jobs market is remarkably resilient, but it is not perfect. While unemployment is at is at its lowest rate for nearly fifty years, the high number of vacancies that still exist and inactivity in the labour market is limiting economic growth.

“We must get Britain working again. These gradual changes focus on getting people back into work and maximising the hours people take on to help grow the economy and raise living standards for all.

It’s a win-win. It boosts incomes for families and helps businesses get the domestic workers they need, all while supporting economic growth.”

Secretary of State for Work and Pensions Chloe Smith MP said: “As we continue to face economic challenges and labour market shortages, we are committed to helping people on lower incomes to boost their pay – because we know work is one of the best ways to support your family and help grow our economy.

“Whether it’s increasing their hours in their current role, entering a new sector or switching careers, we want people of all ages and all stages to be able to progress into fulfilling careers.

“The expertise our dedicated DWP Work Coaches bring, will help to drive this change by removing barriers to progression and opening up opportunities for training and building skills, to increase earnings.”

These changes will be Great Britain-wide and, in line with usual practice, the UK Government will work with the Northern Ireland Civil Service to determine the most suitable way to deliver support in Northern Ireland in due course.

Certain groups will remain exempt from sanctions, including people who are unable to work due to long-term sickness or a disability.

£150 Disability Cost of Living Payments begin this month

From today (20 September) around six million disabled people in the UK will start to receive their one-off £150 Disability Cost of Living payment

  • Six million people who are paid certain disability benefits will begin to receive a one-off payment of £150 from today
  • Payments are part of the government’s wider £37 billion support package, including the Energy Price Guarantee and cost of living payments totalling £650

Those who had confirmed payment of their disability benefit for 25 May will receive the £150 automatically, with the vast majority to be paid by early October.

The payment will help disabled people with the rising cost of living, acknowledging the higher disability-related costs they often face, such as for care and mobility needs.

The cost of living payments from the government are part of a £37 billion package of support, which will see millions of households receive at least £1,200 this year to help cover rising costs, and follows the Prime Minister’s announcement of a new Energy Price Guarantee for the next two winters saving households on average £1,000 a year on their energy bills.

Work and Pensions Secretary Chloe Smith said: “We know disabled people face additional costs and this government is listening and taking decisive action to protect the most vulnerable in our society.

“In addition to the £150 Disability Cost of Living payment, households will save an average of £1,000 a year through our new Energy Price Guarantee and the lowest-income households will receive at least £1,200 to help with the rising cost of living this year.

“This multi-billion-pound package of support reinforces our commitment to help UK households, particularly those with disability challenges, through the tough times ahead.”

UK Chancellor of the Exchequer Kwasi Kwarteng said: “The government is providing vital support to shield the most vulnerable from rising prices caused by global economic challenges.

“From today, a one-off £150 payment will automatically land in over six million disabled peoples’ accounts. This is in addition to the decisive action we took last week to hold down energy bills over the next two years, saving the average household £1,000 a year.

“The government is standing behind people this winter, and in the longer term we are focusing on driving economic growth – the only way to permanently boost everyone’s living standards.”

Adult Disability Payment now open for new applications across Scotland

Adult Disability Payment is now open for new applications across Scotland. The national rollout follows successful pilots in 13 local authority areas, which began in March.

It is the twelfth and most complex benefit to be delivered by the Scottish Government. It replaces the UK Government’s Personal Independence Payment.

The benefit provides financial support to people aged between 16 and state pension age who are disabled, have a long-term health condition or have a terminal illness.

People already receiving the UK Government’s Personal Independence Payment and Disability Living Allowance do not need to apply for Adult Disability Payment.

These existing awards will transfer automatically from the DWP to Social Security Scotland. Cases will transfer in stages starting from this summer and this process is expected to be completed by the end of 2025.

Minister for Social Security Ben Macpherson said: “The national launch of Adult Disability Payment is a significant milestone in the development of our new social security system, that will treat everyone with dignity, fairness and respect.

“This is the twelfth and most complex devolved benefit to be introduced and, once all the awards have transferred from the DWP, this new payment will be supporting more than 300,000 people.

“We are offering a range of ways to make an application, including online, by post, over the phone or face-to-face. Social Security Scotland local delivery teams are also available to provide assistance in communities across the country.

“In creating our new system, we have worked extensively and collaboratively with people who will use this service. Their input, and their direct experience of the DWP system, has significantly informed our policy development and resulted in the number of improvements that we are making to the way in which we are delivering our new service.

“The Scottish Government is focused on providing a positive and compassionate experience for people applying for and receiving our Adult Disability Payment. 

 “In our Scottish system no one will be subject to DWP style assessments or degrading functional examinations, and we will never use the private sector to carry out health examinations.

“People will only be invited to a consultation on occasions when we require more information so we can make a decision. This will be a conversation with a health and social care professional to understand how a person’s disability or health condition impacts them.

“Social security is a shared investment in building a fairer Scotland. It is a human right and we encourage those who may be eligible for support to apply.”

Moira Tasker, Chief Executive of Inclusion Scotland said: “Inclusion Scotland warmly welcomes today’s launch of the Adult Disability Payment. Many disabled people are being disproportionately hard hit by the UK economic crisis and are deeply worried about just surviving this winter.

“The Adult Disability Payment will offer much needed support to eligible disabled people. It ushers in further progress towards upholding the values of dignity and respect in Scottish society, which were entirely lacking in the Department of Work and Pensions approach to disability benefits.  

“We are proud of the part that disabled people, our members and Inclusion Scotland played in engaging with the Scottish Government to make a new system for Scottish disability benefits fair and accessible.  

“The Adult Disability Payment is a leap forward. It has the potential to enable disabled people and Scots with long-term health conditions to participate in their communities and wider Scottish society – whether that is through work, education, family life, or simply a life lived without fear of phone calls or letters demanding repeated assessments and sanctions.”

You can apply if you are between 16 years old and state pension age, need help with the extra costs of being disabled or having a long term health condition.

Apply at https://bit.ly/ApplyForAdultDisabilityPayment

Over one million families claiming tax credits to receive first Cost of Living Payment from 2 September

Around 1.1 million claimant families receiving tax credits will get their first Cost of Living Payment from Friday 2 September 2022, HM Revenue and Customs (HMRC) has confirmed.

This £326 UK Government payment will be paid automatically into eligible tax credit-only customers’ bank accounts between 2 and 7 September 2022. The first HMRC payments will total around £360 million.

Nadhim Zahawi, Chancellor of the Exchequer, said: “I know people are really concerned by rising prices so I’m glad that over a million more low earners will shortly receive their first Cost of Living Payment. 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 £37 billion package of help for households, which is targeted at those who need it most.”

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “This first Cost of Living Payment will provide 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.”

These latest payments mean that more than eight million eligible households in receipt of a means-tested benefit will have received the first of two automatic Cost of Living payments of £326 from 14 July.

The second means-tested payment of £324 will be issued later this year – from the autumn for DWP benefit claimants, and from the winter for tax credit-only customers.

Tax credit claimants who also receive benefits from the Department for Work and Pensions will have already received their first Cost of Living Payment from July 2022.

The Cost of Living payments from the UK Government are part of a £37 billion package of support, which will see millions of low-income households receive at least £1,200 this year to help cover rising costs.

As well as the Cost of Living Payment, other UK Government support includes:

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

This is all in addition to changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants; a rise in the National Living Wage to £9.50 an hour; and a tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.

The UK Government is offering help for households. Customers should check GOV.UK to find out what cost of living support they could be eligible for. 

Social Security Scotland: Early Bank Holiday payment dates

Due to the Bank Holiday on 29th August, some payments for Scottish Child Payment, Child Disability Payment and Adult Disability Payment will be paid into accounts early.

All payments will return to normal from 3rd September