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Daily Record
Daily Record
Lifestyle
Linda Howard

DWP clarifies reason some people on ESA will not qualify for new £301 cost of living payment

Earlier this week, the Department for Work and Pensions (DWP) confirmed that more than 8 million families across the country will receive the first part of the 2023/24 £900 means-tested cost of living payment this Spring. Over the next financial year, the UK Government will pay out £1,350 in cost of living support 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 land in their bank accounts automatically this Spring - there's no need to apply. However, the DWP also recently 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.

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