Cost of living support scheme
Published 27 September 2022
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Project objectives
The UK government recently announced Cost of Living Payments to qualifying households that receive tax credits from HMRC, or other eligible benefits from Department for Work and Pensions (DWP).
Eligible customers receiving these benefits will get a payment of £650 made in 2 instalments. Eligible households receiving income-related benefits from DWP (Universal Credit, Pension Credit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance) started to receive their first payments from DWP from 14 July 2022, followed by another in the autumn.
Eligible households on tax credits and no other qualifying benefits received their first payment from HMRC in September 2022 and will receive another one from winter 2022.
Customers do not need to do anything to receive a payment. They do not need to call us or apply, and our helplines will include a pre-recorded message on this to support customers and minimise contact. If they are eligible, it will be paid to them automatically, into the bank account where they receive their tax credits payments.
HMRC are making these payments to eligible tax credits customers after DWP in order to avoid duplicate payments. Tax credits claimants who have already received a payment from DWP because they claim another benefit will not receive another one from HMRC.
To be eligible for the first Cost of Living Payment (COL) of £326, customers on tax credits and no other qualifying benefits must have been entitled, or later found to be entitled to, a tax credits payment, or an annual award of at least £26, for any day between 26 April 2022 to 25 May 2022. Eligibility for the second payment will be published shortly. Customers can be eligible for one or both payments as circumstances change.
Tax credit customers will receive a letter from HMRC prior to each payment being made, setting out the eligibility criteria and to let them know when the payment will land. HM Treasury, the Cabinet Office and DWP are leading on and issuing extensive government branded communications products on the payments. We will be supporting this through our own channels including social media, press and through stakeholders.
Customer groups affected
1.1 million customers in receipt of tax credits payments from HMRC (and no other qualifying benefits).
What customers need to do as a result of the change
Action required by the customer is minimal. HMRC will establish their eligibility. Customers do not need to do anything to receive a payment - they do not need to call us or apply, and our helplines will include a pre-recorded message on this to support customers.
How customers will access this service
Support and guidance is available on GOV.UK. The benefits and credits helpline will deal with any direct customer enquiries
When customers need to do this
If customers are eligible, COL Payments will be paid to them automatically, into the bank account where they receive their tax credits payments.
Assessing the impact
We assessed the equality impacts on all the protected characteristic groups in line with the Equality Act and Public Sector Equality Duty and section 75 of the Northern Ireland Act:
- racial groups
- disabled
- sex
- gender reassignment
- sexual orientation
- age
- religion or belief
- marriage and civil partnership
- people with dependants and those without (carers)
- political opinion (in Northern Ireland only)
There is no evidence to suggest any specific impacts on customers within any of these protected characteristic groups.
In our communications to customers, including letters to tax credits customers, we have followed communications best principles and directed people online or to self-serve via GOV.UK. The letters included all the information on Cost of Living Payments available at that time on GOV.UK, including payment dates and eligibility criteria. Customers who are unable to access GOV.UK would not be at any disadvantage to those who could.
Extra support will be provided as required.
Pregnancy and maternity
Impact on customers
New tax credits claims will be made via DWP for Universal Credit and eligibility for one or both COL Payments is established by DWP.
People who use different languages (Including Welsh Language and British Sign Language)
Impact on customers
No specific impact.
Proposed mitigation
Letters and guidance will be available in Welsh.
Opportunities to promote equalities
We have considered opportunities to promote equalities and good relations between people in each of the protected characteristic groups and those outside of that group.
None have been identified.
A full equality impact assessment is not recommended.