Why Tax Credits claimants get the cost of living payment later

More than one million Tax Credit households will receive the second £324 cost of living payment during the last week of November. As confirmed by the Government recently, the second instalment is due to be made between Wednesday, November 23 and Wednesday, November 30, 2022 to those on Tax Credits, and no other means-tested benefits. This however is later than the payment date for those claiming Department for Work and Pensions (DWP) benefits.Many have asked why those claiming Tax Credits have to wait longer for the money to come.The answer was explained by the DWP when the first Cost of Living payment was made.However, the answer was reiterated by the former DWP Minister, now the new Attorney General in Rishi Sunak’s Cabinet, Victoria Prentis MP recently.She explained that the payments are made later in order to avoid the risk of overpayments.READ MORE: Britons urged to consider ‘simple’ boiler hack that could cut energy bills by £112 a year More than one million tax credit households will receive the £324 cost of living payment this month (Image: GETTY)Ms Prentis said: ‘HMRC issues payments to people on Working Tax Credits after the other payments have been made, to allow time to ensure those who claim Tax Credits as well as a means-tested benefit do not receive the payment twice.’This decreases the risk of overpayments to tax credits customers.’Those claiming DWP benefits, have started to receive the second instalment and will see the money in their bank account between November 8 and November 23.Those eligible to receive the second cost of living payment by claiming DWP include people on Universal Credit, Income-based Jobseekers Allowance (JSA), Income-related Employment and Support Allowance (ESA), Income Support and Pension Credit.DON’T MISSPIP claim: The top 5 medical conditions giving £627 a month from DWP – check eligibility [INSIGHT]’I now get money every month!’ Woman, 65, shares way she found extra money for retirement [INSIGHT]NS&I is increasing interest rates on savings accounts up to 3.7% – millions set to benefit [UPDATE] Tax Credit claimants will receive the second cost of living payment towards the end of November (Image: GETTY)If someone gets Tax Credits from HMRC and a low income benefit from the DWP, they will get the cost of living payment from the DWP benefit only.If someone had a joint claim in the qualifying period, a single payment of £324 will be sent using the same payment method used between these dates.The DWP has warned that some payments might come later in some circumstances.This could be due to either being awarded a qualifying benefit at a later date or if someone has changed the bank account their benefit or tax credits are paid into.