The Department for Work and Pensions (DWP) has announced that some people who receive the £650 cost of living payment may be forced to pay it back.
Approximately eight million people were paid the first £326 instalment of the cost of living payment between July 14 and July 31. The money is part of the UK Government's plans to ease the financial burden of the cost of living crisis on those most vulnerable.
The money is automatically paid to those who claim certain qualifying means-tested benefits. These include Universal Credit, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Income Support and Pension Credit.
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In addition, people who claim tax credits will receive the money through HMRC. The first payment is due to be made this September.
In a new warning, though, the DWP has revealed that some people who get the money will need to repay it. The UK Government department wrote: "If you have received a Cost of Living Payment, but we later find that you were not eligible for it, you may have to pay it back.”
As reported by the Daily Record, the DWP and HMRC make use of a computer program in order to locate people who are eligible for the cash. The eligibility criteria for the £650 cost of living payment, as well as a separate £150 payment for disability benefits claimants and a £300 for pensioner households, was revealed in May.
The DWP unveiled an online form earlier in the week for people who believe they should have received the first £326 cost of living boost but have not yet done so. To use the ‘Report a missing Cost of Living Payment’ form on GOV.UK, you will need your National Insurance number.
Reason you may not have received a payment
The DWP has shared a number of potential reasons why people may not have gotten the money, including:
- You're still waiting for a decision on your benefit application or appeal - if you're eligible, you'll get the Cost of Living Payment automatically later
- The payment is not due yet for your benefit - for example, if you get Tax Credits, you will not get your first Cost of Living Payment until Autumn 2022
You're not eligible for it - to get the £326, you must have been either:
- Entitled to a Universal Credit payment for an assessment period that ended in the period April 26, 2022 to May 25, 2022
- Entitled to an income-based JSA, income-related ESA, Income Support or Pension Credit payment for any day in the period April 26, 2022 to May 25, 2022
Who does not qualify for the £650 payment?
You will not receive the money if you claim New Style Employment and Support Allowance, Contributory Employment and Support Allowance or New Style Jobseeker’s Allowance — unless you also receive Universal Credit.
Qualifying low income benefits and Tax Credits
In order to receive the £650 cost of living payment, you must claim any of the following:
- Universal Credit
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
Backdated Cost of Living payments
You may receive your money later than normal if, for example, you make a successful claim for a qualifying benefit at a later date or make changes to the account your benefit or Tax Credits are paid into.
In these cases, the cash will still be paid automatically and you do not need to get in touch with the DWP or HMRC.
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