Tax credit recipients will begin receiving their £299 cost of living payment from the HMRC from tomorrow.

HMRC is reminding eligible recipients that the cost of living payment will be paid out between February 16 and February 22.

In a text to eligible households, HMRC said: “HMRC: £299 Cost of Living Payment to be paid automatically between 16-22 February to eligible tax credits customers. Search ‘Cost of Living Payments’ on GOV UK.”

If claimants are eligible and receive tax credits, and no other qualifying benefits, they will receive their payment from HMRC, to help with everyday costs. 

Households do not need to do anything to receive a payment. If they are eligible, payment will be made automatically into the bank account where they receive their tax credits.

The HMRC payment will appear on bank statements as ‘HMRC COLS’, referencing Cost of Living Support.

HMRC is also warning those eligible for the cost of living payment to be wary of scam attempts.

They said: “The HMRC text message is for information only.  We do not ask our customers to reply to it, and it doesn’t include any links. We do not ask for any personal or financial details in the message.

“Customers can check advice on scams by searching ‘HMRC phishing and scams’ on GOV.UK. They can also check if the contact from HMRC is genuine by searching ‘Check a text message from HMRC’ on GOV.UK

“Visit GOV.UK for more information on how to report a scam or suspicious activity.”

It is the third of up to three payments totalling up to £900 paid to eligible households on means-tested benefits over 2023/24 and comes as part of a support package that has helped millions of households since autumn 2021.

"The economy has turned a corner"

Mel Stride, Secretary of State for Work and Pensions, said:  "The economy has turned a corner, and with inflation falling we are providing millions of the most vulnerable households with another significant cash boost.

"Our fair approach to welfare is underpinned by a belief that the best way to secure long-term financial security is through work.

"This is why we have cut taxes for over 27 million working people and have launched a £2.5 billion Back to Work Plan to help thousands more people off benefits and into jobs.