Last week, UK Chancellor of the Exchequer Rishi Sunak unveiled a £15 package of financial aid to help households across the UK amid the worsening cost of living crisis.
Following the £22 billion of support previously announced earlier in the year, a large portion of the money will be distributed to those most vulnerable to soaring energy prices.
While every household across the UK will receive a £400 discount on their energy bills in October, certain benefits claimants will also get one-off payments to provide additional aid.
READ MORE — DWP reveals 2022 Winter Fuel Payment rates and who will get for £300 boost
The Department for Work and Pensions (DWP) has issued an update regarding these payments, clarifying which benefits claimants will not be eligible for a Cost of Living Payment.
As reported by the Daily Record, here is a rundown of all of the key points regarding the updated Cost of Living Payment guidance.
Low income benefits
If you receive any of the following benefits, you will get £650 split up into two payments:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Universal Credit
Those who are eligible will receive the first sum in July and the second one in the autumn.
To be entitled to the first payment, you must have been claiming one of these benefits — or have started a claim that is later successful — by May 25.
The DWP added: “We will update this guidance when the [UK] Government has announced the date on which you need to have been entitled to one of these qualifying benefits to get the second payment.”
Payments for joint claimants
The new guidance has also clarified that those who have a joint claim with a partner and are eligible will receive one payment of £650 between them.
I get a DWP benefit and Tax Credits from HMRC, who will make my payment?
In this case, the payment will be made by HM Revenue & Customs (HMRC).
The DWP states: “You will not get a payment if you’re eligible for a Cost of Living Payment from HMRC because you’re entitled to Tax Credits.”
Simply put, this means you will get the £650 sum from HMRC later this year.
The first payment date has not been set, but it will be sometime in the autumn — while the second one will be in the winter.
What happens if you get certain legacy benefits?
If you receive either New Style Employment and Support Allowance or New Style Jobseeker’s Allowance, you will not be eligible for the £650 payment unless you also claim Universal Credit or a disability benefit.
If you receive an eligible disability benefit, you may also receive an additional Disability Cost of Living Payment worth £150.
In order to be eligible for this payment you must be claiming — or have started a claim that is later successful — for any of the following by May 25:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance
- Personal Independence Payment
- Adult Disability Payment (Scottish disability benefit)
- Child Disability Payment (Scottish disability benefit)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
The DWP has revealed that this payment will be made at the end of September.
Tax Credits
You may receive the first payment of the £650 in the autumn if you were getting either Child Tax Credit or Working Tax Credit on May 25.
The second payment will be made in the winter, though the DWP has not yet confirmed a date.
The DWP added: “If you have a joint claim with a partner, you will get one payment of £650 for both of you, paid in two lump sums in autumn 2022 and in winter 2022.
“You will not get a payment if you’re eligible for a Cost of Living Payment from DWP because you’re getting a low-income benefit.”
However, it stated: “If you also get a qualifying disability benefit, you may get an additional Disability Cost of Living Payment from DWP.”
You can read the full amendments to the Cost of Living Payments on GOV.UK here.
