Cost of living payments are set to help millions of people who are struggling financially across the UK - but many may still have questions about the initiative.
The Department for Work and Pensions (DWP) has issued an update as the second instalment of the £650 cost of living payment is set to be made to around eight million people. Part of the Government’s package of support, the payments also include a £300 pensioner cost of living payment - issued alongside the winter fuel payment - and a £150 disability payment. The money is intended to help with energy bills.
The payments are targeted at specific groups most vulnerable to rising costs, reports Birmingham Live. The DWP has provided responses to a series of frequently asked questions about the payments. These are listed below.
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1. How do people apply for cost of living payments?
You do not need to apply or make a claim for DWP cost of living payments. If you’re eligible for them - for example, by claiming specific benefits - you will receive them automatically, in the same way you would usually receive benefit or tax credit payments.
2. Will cost of living payments affect other benefits?
Cost of living payments do not affect any other benefits or tax credits you already receive. They are not taxable and do not count towards your annual benefit cap.
3. What are the qualifying dates and requirements for the £324 cost of living payment?
To receive the £324 cost of living payment, claimants must have received a payment - or must later be found to have been entitled to a payment - of the following qualifying benefits on the following dates:
Universal Credit: Claimants must have been entitled, or later found to be entitled, during the assessment period from August 26 to September 25.
Income-based JSA, income-related ESA, Income Support and Pension Credit: Claimants must have been eligible for payments on any day from August 26 to September 25.
Tax credits: Claimants must have received a payment - or an annual award of at least £26 for the 2022-23 tax year - from August 26 to September 25.
4. When will the second cost of living payment be made?
Most people eligible for the £324 cost of living payment will get it from November 8-23. Those eligible through claiming tax credits will receive their payment by the end of November in most cases, the DWP says.
5. Why is the cost of living payment being issued in instalments of £326 and £324?
The £650 cost of living payment is being issued in instalments of £326 and £324 respectively. This is to ensure that claimants know they have received both payments and to reduce the risk of fraud and duplicate payments, according to the DWP.
6. What happens if you get both child tax credit and working tax credit?
People who receive both working tax credit and child tax credit will receive only one set of cost of living payments, which will be linked to child tax credit only.
7. Will claiming additional benefits affect how much I get?
If you receive qualifying benefits from the DWP and tax credits from HMRC, you will receive cost of living payments from either the DWP or HMRC. People receiving qualifying disability benefits will also get the £150 disability cost of living payment.
8. Why are people on tax credits getting the £324 cost of living payment later?
Some people receive tax credits from HMRC and other qualifying benefits from the DWP. To avoid duplicate payments, tax credit claimants will receive their cost of living payment from HMRC shortly after people on other benefits get theirs from the DWP.
9. Will I still receive a payment if my Universal Credit award was £0 in the qualifying period?
If your Universal Credit award for the qualifying period was £0 - known as a ‘nil award’ - you will not receive the £326 and £324 cost of living payments. However, if money has been deducted for other reasons, such as paying off rent arrears, you may still be eligible.
10. Is it too late to claim Pension Credit and get the second cost of living payment?
You can backdate a claim for Pension Credit by up to three months, so if you’re eligible for this benefit you can still claim it and get the second cost of living payment. However, you must claim Pension Credit by December 19 in order to get the extra money.
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