News on when the first installment of a £900 cost of living payment will start arriving in bank accounts is soon expected from the Department for Work and Pensions (DWP).
After a tough economic winter, many people are struggling with their finances. This payment will be means-tested but it's not yet known exactly when the first instalment of £301 will be paid, or what the qualifying period is.
SomersetLive reports that it will automatically land in the bank accounts of those eligible by the end of Spring. The first wave of financial support is available to people who receive means-tested benefits from the DWP, or those receiving Tax Credits along with another qualifying DWP benefit. Those only in receipt of Tax Credits from HM Revenue and Customs (HMRC) will get the money once the first DWP payment window closes.
DWP Minister Mims Davies MP recently said qualifying dates for the £301 and £150 disability cost of living payments are being set out in legislation and that payment dates for the “vast majority” of people will be announced on the official GOV.UK page. People should search for Cost of Living Payments 2023 to 2024 in the search bar, which should appear at the top of the results.
Ms Davies gave her response following a written query from Welsh MP Hywel Williams, who asked “when each cost of living payment will be made in the 2023-24 financial year”.
The Minister for Social Mobility, Youth and Progression, said: “The Government understands the pressures people are facing with the cost of living and is taking action to help through the cost of living payments and through a wider package of support.
“We will be delivering the means-tested cost of living payment of up to £900 in three separate payments. The first payment of £301 will be made from Spring 2023, the second payment of £300 from Autumn 2023 and the third payment of £299 from Spring 2024.
“People on qualifying disability benefits will receive a Payment of £150 during Summer 2023 and pensioner households will receive a £300 Pension Cost of Living Payment alongside their Winter Fuel Payment in Winter 2023.”
There are several benefits that could make claimants eligible for the £301 cost of living payment, including Universal Credit and Tax Credits - through which 5.4 million households across the UK are expected to qualify, and Pension Credit, through which 1.4 million pensioner households are expected to be paid.
Some 1.3 million claimants will be eligible through legacy DWP benefits such as Jobseekers Allowance and Income Support, reaching a total of 8.1 million households. Below is a guide to qualifying benefits for each of the cost of living payments.
£900 means-tested cost of living payment
- £301 - first payment to be made during Spring 2023
- £300 – second payment to be made during Autumn 2023
- £299 - third payment to be made during Spring 2024
This will be paid to eligible households receiving the following benefits:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credit - paid by HMRC if no other DWP means-tested benefit is also claimed
- Child Tax Credit - paid by HMRC if no other DWP means-tested benefit is also claimed
This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
£150 disability cost of living payment
- £150 - this one-off payment will be made during Summer 2023
This will be paid to eligible claimants receiving the following benefits:
- Disability Living Allowance
- Personal Independence Payment
- Adult Disability Payment
- Child Disability Payment
- Attendance Allowance
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
This payment will be tax-free and will not have any impact on existing benefit awards.
£300 Pensioner Payment
- £300 - this will be added to annual Winter Fuel Payments during Winter 2023/24
Older people also in receipt of Pension Credit will also qualify for the £900 means-tested cost of living payment and the £150 payment if they are receiving support through one of the listed disability benefits.
In total, pensioner households could get an income boost of £1,350 during 2023/24.
