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Bristol Post
Bristol Post
Business
David Bentley & Chloe Parkman

DWP responds after £150 cost of living payment paid early with recipients confused

The Department for Work and Pensions (DWP) has responded as the early arrival of some £150 cost of living payments has sparked confusion. The sudden cash boost landed in a number of bank accounts on March 28 - prior to the start of the new financial year when all new cost of living payments were believed to be scheduled.

According to Birmingham Live, five new cost of living payments are set to go into the accounts of eligible people during the next financial year which starts on April 6. DWP announced this week that the first of those, a £301 payment for people on means-tested benefits, will arrive between April 25 and May 17.

The DWP said 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.

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However, some people 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.

Guidance from the DWP 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 some online groups a number of 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 claimed they had been told the cash was being paid months ahead of the regular summer payment for people on disability benefits.

Amid the doubt and speculation, it was claimed that DLA advisors had said a number of 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, Birmingham Live 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.

Others online later claimed that the early payment was an error as 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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