The Department for Work and Pensions (DWP) has explained why people claiming contributory and new style benefits will not be eligible for the £900 cost of living payment which is scheduled to be made in three lump sum instalments over the next financial year. The first payment of £301 is due to land in over eight million bank accounts this Spring.
Earlier this week, SNP MP Martyn Day asked DWP if it would “extend the eligibility for the 2023-24 Cost of Living Payments to people in receipt of contributions-based Employment Support Allowance”.
In a written response, DWP Minister Mims Davies said: “The government has targeted the means-tested Cost of Living Payments to those on means-tested benefits as those with the lowest incomes are most vulnerable to increases in the cost of living. Contributory and new style benefits such as contributory Employment and Support Allowance are not means-tested benefits, and people claiming them may have other financial resources available to them.”
The DWP Minister for Social Mobility, Youth and Progression, continued: “Low-income claimants of these benefits may also be able to claim a means-tested benefit.
“For example, they may be eligible for Universal Credit and, if their claim is successful, they may qualify for future cost of living support. They may also be eligible for a disability benefit and the Disability Cost of Living Payment.”
Ms Davies also highlighted that contributory and new style benefits will be up-rated by 10.1 per cent from April.
She urged anyone in need of further financial support to contact their local council.
New DWP guidance on GOV.UK states that exact payment windows and qualifying periods for eligibility will be announced in due course, but are designed to ensure a consistent support offer throughout the year.
The delay in confirming qualifying periods until the dates have passed also helps to reduce the risk of fraud from online criminals keen to exploit those waiting on the support.
Nobody needs to apply for any of the payments, they will all be made automatically like last year so if you receive a text or an email inviting you to apply - ignore it and either delete it immediately or report it.
Cost of living payment schedule
- £301: First means-tested payment due this Spring
- £150: Disability payment due this summer
- £300: Second means-tested payment due this Autumn
- £300: Pensioner payment will be added to 2023/24 Winter Fuel Payment
- £299: Third means-tested payment due Spring 2024
There are several benefits that could make claimants eligible for the £301 Cost of Living Payment, including Universal Credit and Tax Credits - through which 5.4 million households across the UK are expected to qualify, and Pension Credit, through which 1.4 million pensioner households are expected to be paid.
Some 1.3 million claimants will be eligible through legacy DWP benefits such as Jobseekers Allowance and Income Support, reaching a total of 8.1 million households.
Eligible individuals do not need to apply for payments, as they are made automatically and those eligible for cost of living payments through Tax Credits, and no other means-tested benefits, will be paid by HMRC shortly after DWP payments are made.
Below is a guide to qualifying benefits for each of the cost of living payments.
£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.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, o r subscribe to our newsletter which goes out Monday to Friday - sign up here.
READ NEXT
- People finding it difficult to pay bills this month urged to seek free advice from charity
DWP urged to consider providing dedicated financial help for people on a low income living alone
DWP writing to older people ‘soon’ to encourage them to check for Pension Credit worth £3,500
New energy social tariff proposals could see 12m households get £1,500 cash help each year
DWP urged to introduce new £25 weekly uplift for people on Universal Credit and legacy benefits
