The Department for Work and Pensions (DWP) has confirmed that over 8 million families across the UK on means-tested benefits will automatically receive a payment of £301 this Spring. It has also announced that over 6.5 million people on disability benefits will receive a £150 payment this summer.
After confirming the schedule for five cost of living payments through the 2023/24 financial year, the DWP announced in Parliament on Tuesday more detail on the support, including estimates of how many people across the UK, and in each local authority and parliamentary constituency, will receive the first £301 Cost of Living Payment and the £150 Disability Payment, which follows on from up to £1,200 in support for low-income households in 2022.
More than 686,000 households in Scotland will be eligible for the £301 means-tested payment and 639,000 people on qualifying disability benefits are set to receive the £150 lump sum this summer.
Work and Pensions Secretary, Mel Stride said: “These direct payments will help people right across the UK over this year and the start of the next, as we continue to provide consistent, targeted and substantial support for the most vulnerable.
“Our wider support package, including the Energy Price Guarantee, will ensure every household is being helped through this challenging period of high inflation, caused by Putin’s illegal war and the aftershocks of the pandemic.”
Chancellor of the Exchequer, Jeremy Hunt added: “High inflation, exacerbated by Putin’s illegal war, is hurting economies across the world and making people poorer.
“These payments are the next part of the significant support we are providing through this challenging time, with millions of vulnerable households receiving £900 directly into their bank accounts this financial year alongside additional help for pensioners and those with disabilities.
“This latest payment will provide some temporary relief, but the best thing we can do to help families and businesses is to stick to the plan to halve inflation this year.”
DWP said that exact payment windows and qualifying periods for eligibility will be announced in due course, but are designed to ensure a consistent support offer throughout the year.
Cost of living payment schedule
- £301: First means-tested payment due this Spring
- £150: Disability payment due this summer
- £300: Second means-tested payment due this Autumn
- £300: Pensioner payment will be added to 2023/24 Winter Fuel Payment
- £299: Third means-tested payment due Spring 2024
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.
Eligible individuals do not need to apply for payments, as they are made automatically and those eligible for cost of living payments through Tax Credits, and no other means-tested benefits, will be paid by HMRC shortly after DWP payments are made.
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.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out four times each week - sign up here.
READ NEXT
Check how much of the £1,350 cost of living payments you are due this year
- Specific group of people who will not receive new £301 cost of living payment due this Spring
New interactive map helps people find free warm spaces in their area just by entering postcode
DWP rule change this month for couples working 24 hours or more each week between them
New cost of living payment warning to people due money over next few months
