The Department for Work and Pensions (DWP) has dismissed a new call from Labour to widen eligibility for the second instalment of the £650 means-tested cost of living payment to include people receiving contributions-based Employment and Support Allowance (ESA). The DWP recently confirmed that over eight million households are set to receive the second payment, worth £324, between November 8 and 23, 2022.
Responding to Zarah Sultana MP on Thursday, DWP Minister Tom Pursglove, explained that the cost of living payments are providing “targeted” support for households where people are on a low income or receiving support through means-tested benefits.
He confirmed that there are “no plans” to change the current eligibility criteria, but highlighted how non-means tested benefits such as contributions-based ESA “may have other financial resources available to them”.
In a written response, Mr Pursglove 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.
“We have no plans to change the current eligibility criteria.”
He added how the second cost of living payment is part of the UK Government’s £37 billion support package to help households across the country navigate the current financial crisis gripping Great Britain.
Below is everything you need to know about the second cost of living payment being paid by DWP.
People in receipt of Tax Credits who do not receive a DWP means-tested benefit will receive the £324 payment between November 23 and 30 - find out more here.
Eligible benefits for November £324 payment from DWP
You may get a payment of £324 if you are currently claiming any of the following:
- Universal Credit
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Tax Credits - must be claimed alongside one other DWP benefit in this list, otherwise payment will be made later from HMRC
The payment will be made separately from your benefit.
If you have a joint claim with a partner, you will get one payment of £324 for your joint claim, if you’re entitled. The easiest way to think of this is one payment per claim, so two individuals living in a house with two separate claims will get two separate payments.
Benefits that do not qualify for £324 cost of living payment
You will not get a payment if you get New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker’s Allowance, unless you get Universal Credit.
Qualifying period
Universal Credit
You will be eligible for the second Cost of Living Payment of £324 if you were entitled to a payment (or later found to be entitled to a payment) of Universal Credit for an assessment period that ended in the period August 26 2022 to September 25 2022.
Universal Credit ‘nil awards’
DWP guidance states that you will not be eligible for the second cost of living payment if your earnings reduced your Universal Credit to £0 for the qualifying assessment period - this is sometimes called a ‘nil award’.
If money has also been taken off for other reasons, such as payments of rent to your landlord or for money that you owe, you might still be eligible.
Income-based JSA, income-based ESA, Income Support and Pension Credit
You will be eligible for the second Cost of Living Payment of £324 if you were entitled to a payment, or later found to be entitled to a payment, of income-based JSA, income-related ESA, Income Support or Pension Credit for any day in the period August 26 2022 to September 25 2022.
New claims for Pension Credit
People of State Pension age making a new claim for Pension Credit, worth on average £3,300 each year, will still qualify for the second payment as long as their application is received by December 18.
Pension Credit is a retrospective benefit, which means it can be backdated to three months - falling within the September 25 cut-off qualifying period.
Find out more about claiming Pension Credit here.
Full details of the second payment and all cost of living support can be found on GOV.UK here.
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