The Department for Work and Pensions (DWP) has confirmed that more than eight million families will receive the first part of the 2023/24 £900 means-tested cost of living payment this Spring.
The UK Government is set to pay out £1,350 in cost of living support over the next financial year. This payment will go to those on a low-income, people claiming disability benefits and pensioner households.
Claimants on qualifying benefits, including Universal Credit, Pension Credit and Tax Credits, will see the first payment for £301 in their bank accounts automatically this Spring - there's no need to apply, reports The Daily Record.
But the DWP also confirmed the reason why people on Contribution-based Employment and Support Allowance (ESA) will not be eligible for any of the means-tested payments.
Minister for Social Mobility, Youth and Progression, Mims Davies MP, clarified that the new £900 cost of living payment is being targeted at low income households in receipt of a “means-tested income replacement benefit” - Contribution-based ESA is a non means-tested benefit.
This response came after Labour’s Dame Angela Eagle MP asked in a written query: “For what reason the Department has decided that those in receipt of Contribution-based Employment Support Allowance and who do not receive Universal Credit are not eligible for Cost of Living Support payments?”
Ms Davies said: “The cost of living payment is being targeted at low income households who are in receipt of a means-tested income replacement benefit. Contribution-based Employment and Support Allowance is a non means tested benefit.
“Non-means tested benefits are not qualifying benefits for the cost of living payment in their own right because people receiving these benefits may have other financial resources available to them.”
The DWP minister went on to outline the additional UK Government support being paid to millions of households in 2023/24. “This payment comes on top of extensive [UK] Government support with the cost of living, including six million disabled people having been paid a separate £150 Disability Cost of Living Payment,” she explained.
More than eight million people of State Pension age will get a £300 Pensioner Cost of Living Payment added to their annual Winter Fuel Payment.
Previously, the DWP has said that exact payment windows will be announced closer to the time, adding that payments are being spread out to ensure consistent support throughout the year.
£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.
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