More than eight million people on eligible means-tested benefits are expected to receive the first part of the new Cost of Living payments for 2023. The Department for Work and Pensions (DWP) recently announced the payment schedule. However, it appears that not all Universal Credit claimants will qualify for the cast boost in the next wave of pay outs.
Cost of living support can be worth up to £1,350 over 2023/24 for those on a low-income, people claiming disability benefits and pensioner households, according to Nottinghamshire Live sister publication Daily Record. The figure takes into account £900 worth of Cost of Living payments, plus £300 winter fuel payment for pensioner claimants, together with an additional £150 payment if they are receiving support through one of the listed disability benefits.
The new £900 Cost of Living payment for those on eligible means-tested benefits will be made in three instalments - two this year and one in 2024 - it was confirmed by the DWP. However, not everyone on Universal Credit will receive the first payment of £301. DWP guidance explains that claimants will not be eligible for any cost of living payment if their Universal Credit is reduced to £0 for the qualifying assessment period - often referred to as a ‘nil award’.
It’s important to note that no qualifying period dates have been announced yet for any of the cost of living payments, but it’s worth keeping an eye on your Universal Credit payments to make sure that you’re getting at least one penny, as that’s all you will need to be eligible for the £301.
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Almost 551,000 Universal Credit claimants missed out on the first cost of living payment for £326 last summer due to a nil award. DWP has previously explained that while a claimant with a nil award may not qualify for one payment, they may do so for the next - as long as their Universal Credit payment is 1p or more.
There are several reasons your Universal Credit may be reduced to £0 for an assessment period and this includes getting more than one payment of earnings, or you or your partner’s earnings go up, you or your partner’s savings go up, you start getting another benefit. 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.
Claimants on qualifying benefits including Universal Credit and Pension Credit will see the first payment for £301 land in their bank accounts automatically this Spring. DWP 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 payment.
What you need to know about the 2023/2024 payments
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 are 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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