Around 700,000 households will receive £299 from today, to help with the cost of living.
The payment is the third instalment of the £900 cost of living payment, intended to help people on means-tested benefits.
The £299 payment is part of the £900 cost of living payment for means-tested benefit recipients
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Those eligible via tax credits should see it on their bank statement with the code âHMRC COLSâ as the payment reference.
The payment reference is the National Insurance number and âDWP COLâ for those getting the payment via the DWP, such as eligible Universal Credit and Pension Credit recipients.
The cost of living payments are tax-free.
They donât count towards the benefit cap and they wonât affect existing benefit awards.
Myrtle Lloyd, HMRC director general for customer services, said: âThe £299 cost of living payment will deliver further financial support to eligible tax credits customers across the UK.
âTo make things as simple as possible, the payment is made automatically with no action required from HMRCâs customers.â
HMRC is directing people who havenât received the payment as they expected to wait until February 23 before they get in touch.
This allows time for their bank, building society or credit union to process the payment.
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