Cost of living crisis: good news if you receive tax credits

Rule change: tax credit claimants who can show an entitlement to tax credits will receive payments to help cope with the cost of living crisis.

The government has actually done something nice for a change.

It has changed the eligibility rules for the bonus payment to help pay energy bills, announced by Rishi Sunak when he was Chancellor earlier this year.

For tax credits claimants to get the first cost of living payment of £326, they must have been entitled, or later found to be entitled, to tax credits for any day in the period between April 26 and May 25, 2022, rather than having received a payment between those dates.

It means claimants need not have been actually receiving tax credits during that qualifying period. They could also have been eligible for tax credits but had not yet had any money, or may later win an appeal that finds they would have been eligible during that timeframe.

The bad news is that the cost-of-living payments announced by Sunak have now been entirely swallowed up by the rise in the energy price cap that is expected in October, so households will still be worse-off.

Still, not enough help is better than no help at all, right?

At least, that seems to be the Tory government philosophy, as it is not even trying to find another solution until a new prime minister is sworn in on September 5.

Source: Cost of living: Huge DWP change to £326 payment means more people entitled to it

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1 thought on “Cost of living crisis: good news if you receive tax credits

  1. Stu

    Have you seen that the DWP is now fully in charge of the £150 Warm Home Discount?
    They are basing it more upon high use (to be defined) than Disability so many on PIP, Attendance Allowance etc will lose out.
    Seems to me that this year’s £150 Disability Energy Grant will be instead of WHD , not in addition to for many and next year, no more WHD – it’s a stitch-up!

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