A number of people on benefits will not receive a £301 cost of living payment which is due to be paid out this Spring. Some eight million families on low incomes across the UK, who receive benefits from the Department for Work and Pensions (DWP), are set to receive the first instalment of what will be a £900 mean-tested payment in the new financial year.
However not everyone will automatically qualify for the payment, and so will miss out. LancsLive reports that more details are expected to be announced around the £37 billion cost of living package on Wednesday (March 15) when Chancellor Jeremy Hunt delivers his 'back to work' Budget.
The date for when the first instalment will be paid out is also yet to be announced, while further payments of £300 and £299 are expected to be made in Autumn 2023 and Spring 2024, respectively. The DWP has previously mentioned that the payment window for the first payment of £301 - and all other cost of living support - will not be announced until the last day of the qualifying period has passed.
Read more: DWP: New payment rates for Universal Credit, Child Benefit, PIP and more from next month
The Daily Record reports that DWP Minister for Social Mobility, Youth and Progression, Mims Davies MP, recently explained to MPs that this will help to "minimise work disincentives and fraud risks". The key message for anyone currently in receipt of Universal Credit or Pension Credit is that they must receive an award for at least one penny during the qualifying period.
If you have a 'nil reward' you will not receive the £301 payment. There are also other benefits, especially contributions-based ones, which will not be eligible for any of the £900 payment.
The guidance on eligibility for the 2022/23 cost of living payments is expected to be the same for 2023/24 and states: "You will not get a payment if you were getting New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker’s Allowance, unless you were getting Universal Credit as well."
An estimated 800,000 older people eligible for Pension Credit are currently not claiming, reports suggest. The benefit helps those on State Pension with a low income - roughly under £200 per week for single pensioners and £300 for couples.
Claims can be backdated by up to three months and a new claim submitted in the next few weeks could also qualify for the £301 payment, so people are being urged to check if they qualify. You can do so using the online calculator on the gov.uk website, or by calling the Pension Credit helpline on 0800 991 234.
The DWP is continuing its Pension Credit awareness campaign, which it launched back in April 2022 and which has seen a 77% increase in claims for the benefit, worth around £3,500 on average each year.
What is a Universal Credit 'nil award'?
If your Universal Credit is reduced to £0 for the qualifying assessment period, this is referred to as a 'nil award' and you will not be eligible for the cost of living payment. You may receive a 'nil award' for an assessment period for a number of reasons, including receiving more than one payment of your earnings, earnings of yourself or your partner increasing, an increase in the savings of yourself or your partner, or if you start receiving another benefit.
You may still be eligible for the cost of living payment however if money has been taken for other reasons, including rent payments or money that you owe. The DWP previously explained that the £900 payment will be made up of three slightly different amounts (£301, £300, £299), relating to specific qualifying periods, making it simpler to determine if someone has received the correct payments.
It also means that working Universal Credit claimants may be able to qualify for one or more of the payments, especially if they do not always get a ‘nil award’. Below is a quick overview about all the cost of living payments - worth £1,350 in total - due over 2023/24.
You can also find more details on the gov.uk website here.
Cost of living payment schedule 2023/24
People who are eligible for any of the cost of living payments and receive Tax Credits, and no other means-tested benefits, will receive their payment from HM Revenue and Customs (HMRC) shortly after DWP payments have been issued. Exact payment windows will be announced closer to the time they are due to be made, along with qualifying dates.
£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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