New £299 cost of living direct payments going out to 700,000 families from TODAY – exact code to spot if you qualify

MILLIONS of households will begin to receive the third cost of living payment from today.

Around 700,000 households, who receive tax credits will get a direct payment of £299 from HMRC between February 16 and February 22.

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It is the third part of the entire cost of living payments totalling up to £900 for eligible tax credit customers across the UK.

This includes people on means-tested benefits like universal credit, child tax credit and pension credit.

More than seven million eligible UK households have already received the £299 payment directly from the Department of Work and Pensions (DWP) which started making payments on February 6.

And now HMRC from today will begin to send the rest of the direct payments – and will continue to send them until February 22.

The money will be automatically credited to the bank accounts where eligible customers receive their tax credits.

There is no need to contact HMRC or apply for the payment.

To check if the cost of living payment is received, all you need to do is look for a particular code in your banking records.

Payments from HMRC will appear on bank statements as their National Insurance number, followed by “HMRC COLS”, referring to cost of living support.

And those receiving the payment from DWP will see the payment reference as their national insurance number followed by “DWP COL”.

If your NI number is JT 83 42 97B, your payment will show up as “JT 83 42 97B DWP COL” or “JT 83 42 97B HMRC COLS” on your bank statement.

You need to have been entitled to a payment of any of the above qualifying benefits between November 13 and December 12 to be eligible for the free cash.

If you were later found to be entitled to any of the above benefits between the same dates you will also be eligible for the payment too.

Myrtle Lloyd, HMRC director general for customer services, said: “The £299 cost of living payment will deliver further financial support to eligible tax credits customers across the UK.

“To make things as simple as possible, the payment is made automatically with no action required from HMRC’s customers.”

It is important to note that these payments are 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 slightly different amounts, each relating to a specific qualifying period before the payment is made.

This allows HMRC and DWP to ensure support is targeted at those who need it and are eligible; and to determine if a payee received the correct payments and identify the payment value.

What other help is coming?

If you don’t qualify for the £299 cost of living payment, or even if you do and still need help, there is another support on offer.

The Household Support Fund is one option. It is worth £842million and has been shared between councils in England.

They then decide how to distribute their portion.

But what you are entitled to varies on where you live as each local authority sets its own eligibility criteria.

In the vast majority of cases, you will qualify if you are on benefits or struggling financially.

You should approach your council to see if any help is on offer. You can find what council area you fall under by using the Government’s council locator tool online.

You might also be able to claim a free grant from your energy firm if you’re struggling to make payments.

British Gas, Octopus Energy and EDF are some of the major companies that offer help.

Eligibility requirements vary depending on the firm, but you’ll usually have to provide evidence you’re in energy debt or facing fuel poverty.

The Government classes fuel poverty when a household has to spend a “high proportion” of its income to keep the temperature at a reasonable level.

It’s worth checking if you qualify for benefits too, after the latest figures from analytics company Policy in Practice revealed £19billion worth of support goes unclaimed each year.