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David Bentley & Aaron Morris

DWP issues £150 cost of living payment response after cash hits some bank accounts

The Department for Work and Pensions (DWP) has issued an explanation as to why £150 cost of living payments have started cropping up in certain people's bank accounts early.

The sudden appearance of the money come March 28, before the new financial year when all relating payments were thought to be scheduled, left claimants bamboozled on social media.

There are five new cost of living payments which are set to land in accounts over the course of the new financial year - which starts April 6 - with the DWP revealing that the first of those, a £301 payment, will land between April 25 and May 17. This will come to certain people who receive means-tested benefits.

Read more: Parents get an extra hand from the Government as DWP raises maternity allowance and parental pay

Birmingham Live reports according to the DWP, this first payment will go to those who met the criteria during the qualifying dates of January 26 to February 25. During this cut-off period, people must have received a payment of one of the eligible benefits or, in the case of Universal Credit, have had an assessment period ending.

However, some people this week reported that they had received a £150 cost of living payment into their accounts. A payment of this amount is to be given this summer to those on disability benefits so the unexpectedly early cash drop caused considerable confusion.

The benefits eligible for the disability cost of living payment are Attendance Allowance, Constant Attendance Allowance, Disability Living Allowance for adults, Disability Living Allowance for children, Personal Independence Payment, Adult Disability Payment (in Scotland), Child Disability Payment (in Scotland), Armed Forces Independence Payment and War Pension Mobility Supplement.

DWP guidance says: "Most people will be paid the £150 disability cost of living payment during summer 2023. This guidance will be updated with the payment dates before the payments start."

In online groups, some people who are getting Disability Living Allowance (DLA) for their disabled child reported receiving a £150 payment marked in their accounts as DWP COL to signify 'cost of living'. They said they'd been told the money was being paid months ahead of the regular summer payment for people on disability benefits.

Amid much doubt and speculation, it was claimed that DLA advisors had said some people were getting the disability cost of living payment early to reduce numbers who may end up missing out on the cash when staff deal with 6.7 million payments - including over 600,000 in the West Midlands - during summer 2023.

However, we rang the Government's Disability Living Allowance helpline and the automated advice makes it clear that the next payment is coming in the summer, with no mention of early exceptions. Other people online later commented that the early payment was an error because the child's National Insurance number had been flagged on DWP systems as not receiving last year's similar payment of £150, when it had in fact been paid but under the parent or carer's National Insurance details.

It was then claimed that recipients were told they may have to pay the duplicate sum back or would no longer get a summer payment this year. When probed on the mysterious payments, a spokesperson said: "The DWP regularly reviews people's entitlements to ensure they receive the correct payments.

"In this case, people were identified who were retrospectively entitled to September 2022's Disability Cost of Living payment. This could be due to a change of benefit circumstances or a request for backdating when their claim is processed.

"We undertake these exercises periodically even if the claimant did not contact us to inform us of a missing payment. Meanwhile, millions of households will receive £301 from the DWP between Tuesday, April 25, and Wednesday, May 17, the first of the three 2023/24 cost of living payments totalling up to £900 for means-tested benefits claimants.

"Additional £150 Disability Payments and £300 Pensioner Payments due later this year mean some people will receive up to £1,350."

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