The Department for Work and Pensions (DWP) has confirmed that it processed 1.6 million cost of living payments worth a total of £518 million on November 8 to those on qualifying means-tested benefits. An estimated eight million payments for £324 are expected to be made before the payment window closes on November 23.
DWP estimates that by the end of November over 90% of recipients of the second payment will also have received the first payment of £326. Nobody needs to apply for the second cost of living payment as it will be made automatically to eligible claimants and people claiming Tax Credits will receive the payment from HM Revenue and Customs (HMRC) between November 23 and 30.
However, DWP has updated guidance on GOV.UK to clarify a specific group of means-tested benefit claimants - workers claiming Universal Credit - who may not be eligible for the £324 payment this month.
DWP explained: “You will not be eligible for the Cost of Living Payment if your Universal Credit is reduced to £0 for the qualifying assessment period. This is sometimes called a ‘nil award’.
“Reasons your Universal Credit may be reduced to £0 for an assessment period include getting more than one payment of earnings, your or your partner’s earnings go up, your 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.”
You will be eligible for the £324 cost of living payment if you were entitled to a payment (or later found to be entitled to a payment) of Universal Credit for an assessment period that ended in the period August 26 2022 to September 25 2022.
LIb Dem MP Jamie Stone recently asked DWP how many Universal Credit claimants would miss out on the second payment.
In a written response on November 8, DWP minister, Mims Davies MP explained: “A claimant may not be eligible to receive a Cost of Living payment if they have an increase in earnings during the qualifying period. We are unable to distinguish whether this fluctuation is temporary or permanent.
“This fluctuation could be the result of a household receiving additional earnings due to being paid more frequently or another reason.”
Ms Davies also said that during the first qualifying period, which was between April 26 and May 25, there were 464,000 Universal Credit households where earnings reduced their Universal Credit award to £0 for the qualifying period - equivalent to 551,000 Universal Credit claimants.
Eligible benefits for November £324 payment from DWP
You may get a payment of £324 if you get payments of any of the following:
- Universal Credit
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Tax Credits - must be claimed alongside one other DWP benefit in this list otherwise payment will be made later from HMRC
The payment will be made separately from your benefit.
If you have a joint claim with a partner, you will get one payment of £324 for your joint claim, if you’re entitled.
Benefits that do not qualify for £324 cost of living payment
You will not get a payment if you get New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker’s Allowance, unless you get Universal Credit.
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