The Department for Work and Pensions (DWP) has revealed eligibility details for the cost of living payments that are due to be paid next year.
Chancellor Jeremy Hunt announced a range of financial handouts during the Autumn Statement last month in order to help people mitigate the impact of ever-increasing inflation and rising energy bills during 2023/24. The new support package is worth £26 billion and includes payments of £150 for people on disability benefits, £300 for pensioner households and £900 for those on means-tested benefits and tax credits, reports the Daily Record.
More than eight million households in the UK on means-tested benefits will receive the support, which is expected to be paid over winter 2023/24. Last week, Labour’s shadow secretary of state for work and pensions, Jonathan Ashworth MP, asked the DWP if it will take steps to ensure that the payment – which will increase from £650 to £900 – will not exclude benefit claimants whose Universal Credit payments have been reduced to a nil award as a result of a sanction.
In a written response on December 2, DWP Minister Mims Davies MP, confirmed that legislation for the 2023/24 cost of living payments will be brought forward “in due course”. Davies explained: “We will be bringing forward legislation for the 23/24 Cost of Living Payments in due course.
“Claimants who were sanctioned, but still had an entitlement to a Universal Credit payment of at least 1p for an assessment period ending during the qualifying periods would have been eligible to receive a 2022/23 cost of living payment.”
She added that benefit sanctions are calculated with reference to the standard Universal Credit allowance only. “We recognise many of the most vulnerable are those entitled to other elements in Universal Credit, such as housing or child costs.
“If a sanction is applied, claimants continue to receive these other elements and would remain eligible for cost of living payments.”
Backdated £650 cost of living payments
Davies also explained that people determined to have a Universal Credit nil award during the qualifying assessment period could be eligible for a 2022/23 cost of living payment retrospectively if a sanction is successfully appealed. Or if they are awarded a Hardship payment in the qualifying period.
She explained: “Some 98.9 per cent of sanctions are for failing to attend a mandatory appointment at a Jobcentre, and can often be resolved quickly by claimants getting in touch with the Jobcentre and attending their next appointment. Hardship payments are available as a safeguard to claimants who demonstrate that they cannot meet their immediate and most essential needs – including accommodation, heating, food and hygiene – as a result of their sanction.”
£900 cost of living payment 2023/24 qualifying benefits
The qualifying period for the £900 payment has still to be announced, but eligible means-tested benefits are listed below. These include:
– Universal Credit
– Income-based Jobseekers Allowance
– Income-related Employment and Support Allowance
– Income Support
– Pension Credit
– Working Tax Credit
– Child Tax Credit
As before, people receiving Tax Credits-only will be paid separately by HMRC. Anyone receiving Tax Credits along with a qualifying benefit from DWP will be paid by DWP only.
This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
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