In Jeremy Hunt's Autumn Statement last month, the Chancellor announced a series of additional cost of living payments.
These were put in place in a bid to help millions of households across the country who are currently struggling financially with the ongoing cost of living crisis.
The new cost of living support package is worth £26 billion and includes payments of £150 for people on disability benefits, £300 for pensioner households and £900 for those on means-tested benefits from the Department for Work and Pensions (DWP) and Tax Credits from HM Revenue and Customs (HMRC).
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This means that more than eight million households on means-tested benefits will receive the support. Recently however, the DWP have given an indication on who will not receive the money, expected to be paid over winter 2023/24 - although it's important to note that no qualifying period or payment dates have been announced yet.
As reported by the Daily Record, Labour’s shadow secretary of state for work and pensions, Jonathan Ashworth MP, asked DWP if it will take steps to ensure that the means-tested cost of living payment - which will increase from £650 to £900 - will not exclude benefit claimants whose Universal Credit payments have been reduced to a nil award as a result of a sanction.
In a written response on December 2, DWP Minister Mims Davies MP, confirmed that legislation for the 2023/24 cost of living payments will be brought forward “in due course”.
Ms Davies explained: “We will be bringing forward legislation for the 23/24 Cost of Living Payments in due course.
"Claimants who were sanctioned but still had an entitlement to a Universal Credit payment of at least 1p for an assessment period ending during the qualifying periods would have been eligible to receive a 2022/23 cost of living payment.”
She added that benefit sanctions are calculated with reference to the standard Universal Credit allowance only.
Ms Davies continued: ‘We recognise many of the most vulnerable are those entitled to other elements in Universal Credit, such as housing or child costs. If a sanction is applied, claimants continue to receive these other elements and would remain eligible for cost of living payments.”
Backdated £650 cost of living payments
Mims Davies also explained that people determined to have a Universal Credit nil award during the qualifying assessment period could be eligible for a 2022/23 cost of living payment retrospectively if a sanction is successfully appealed, or if they are awarded a Hardship payment in the qualifying period.
Ms Davies explained: “Some 98.9% of sanctions are for failing to attend a mandatory appointment at a Jobcentre, and can often be resolved quickly by claimants getting in touch with the Jobcentre and attending their next appointment.
“Hardship payments are available as a safeguard to claimants who demonstrate that they cannot meet their immediate and most essential needs - including accommodation, heating, food and hygiene - as a result of their sanction.”
£900 cost of living payment 2023/24 qualifying benefits
The qualifying period for the £900 payment has still to be announced, but eligible means-tested benefits are listed below.
These include:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
As before, people receiving Tax Credits-only will be paid separately by HMRC. Anyone receiving Tax Credits along with a qualifying benefit from DWP will be paid by DWP only.
This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
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