There has been confusion this week as some UK benefit claimants have seen an unexpected amount land in their bank accounts. The Department for Work and Pensions (DWP) has issued a response to explain the appearance of the surprise arrival, which totals £150 and is described as a cost of living payment.
The sudden cash boost landed, for some people, on March 28. This is prior to the start of the new financial year when all new cost of living payments were thought to be scheduled. Some baffled benefit claimants expressed their concern online, according to reports.
Following the DWP's announcement that the first of the five new cost of living payments would be due to go into people's accounts during the next financial year, which starts on April 6, it is understandable that there was some confusion around the arrival of the £150 payment. The announcement had said that the first payment for the 2023/24 period, an amount of £301 payment for people on means-tested benefits, would arrive between Tuesday, April 25 and Wednesday, May 17.
According to the DWP, this first payment will go to those who met the criteria during the qualifying dates of Thursday, 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. Birmingham Live wrote that 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.
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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 during summer 2023. However, the publication 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 payment when it had in fact been paid but under the parent or carer's National Insurance details. It was then said that recipients may have to pay the duplicate sum back or would no longer get a summer payment this year.
In a bid to clear up the matter, BirminghamLive asked the DWP what was going on with the mysterious early 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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