Martin Lewis has explained a key point about the different amounts of the £900 cost of living payment, which is going to be made to more than eight million people. The Money Saving Expert founder was speaking after the government announced broadly when cash boosts - up to £1,350 - will be handed out over the coming months.
The Department for Work and Pensions (DWP) only gave very broad ‘seasons’ as to when the money will go into people’s accounts - whereas Mr Lewis gave his more exact predictions. The money is split into £900 for means-tested benefit claimants, £150 for over six million disabled people and £300 for over eight million pensioners on top of their Winter Fuel Payments.
Mr Lewis said this on the dates for the means tested benefits cash: “UPDATE: On the £900 cost of living payment for 8m on means-tested benefits. It’ll come in three instalments.
- £301 ‘Spring’ 23 (as its for the next tax year, it’ll be after 6 April)
- £300 ‘Autumn’ 23 (I’d guess Oct/Nov)
- £299 ‘Spring’ 24 (I’d guess before tax year ends on 6 April)."
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Some were confused as to why the amounts were different - and Mr Lewis revealed that there was a very good reason for this. He said: “PS if you’re wondering why the different amounts. Its so they will be able to pin point which payment you’ve had and which not more easily if there are problems (which is actually quite clever).”
Others were asking about why the help wasn’t for ‘working people’ - but Mr Lewis put them right: “Many replying 'why no help for people who work, just those who do nothing'. Actually 40 per cent-ish of those on Universal Credit are working - means tested benefits includes in-work benefits. A decent chunk of the rest have illness, disabilities or are carers. Its not binary.”
The new £900 cash boost is for over eight million eligible means-tested benefits claimants, including those on Universal Credit, Pension Credit and tax credits, and starts in Spring. The payments will go direct to bank accounts in three instalments over the course of the financial year.
There will also be a separate £150 for over six million disabled people and £300 for over eight million pensioners on top of their Winter Fuel Payments. The government says exact payment windows will be announced closer to the time.
But, are spread across a longer period to ensure a consistent support offering throughout the year. They will be broadly as follows:
- £301 – First Cost of Living Payment – during Spring 2023
- £150 – Disability Payment – during Summer 2023
- £300 – Second Cost of Living Payment – during Autumn 2023
- £300 – Pensioner Payment – during Winter 2023/24
- £299 – Third Cost of Living Payment – during Spring 2024
The DWP added: “If individuals are eligible they will be paid automatically, and there will be no need to apply. Claimants who are eligible for any of the Cost of Living Payments and receive tax credits, and no other means-tested benefits, will receive payment from HMRC shortly after DWP payments are issued.”
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