The UK is just one day away from the next round of cost of living payments. Due to start landing in the bank accounts of those households eligible from Tuesday, April 25, millions across the country will start to receive the £301 payment over the next few weeks - payments are expected to land from Tuesday but will run up until Wednesday, May 17.
The cash is the first of three instalments that make up the £900 cost of living support being handed out by the Department for Work and Pensions (DWP). Further payments will be sent out in summer 2023 and spring 2024 - although exact timescales are yet to be announced.
To be eligible to receive the money, you must be claiming certain means-tested benefits during a qualifying period. Thanks to Nottinghamshire Live parent publication the Mirror, here is everything you need to know.
When was the qualifying period?
To be in the running for the support, you need to have been entitled to a payment, or later found to have been entitled, between January 26 and February 25. For those claiming Universal Credit, this counts as the qualifying assessment period. However, you will not be eligible for the cost of living payment if your benefit is reduced to £0 for the qualifying period. This is often referred to as a "nil award".
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Benefits that mean you are eligible
You need to be claiming one of the following means-tested benefits during the qualifying period to be eligible for the latest round of payments.
The benefits are:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
If you claim Tax Credits from HMRC and no benefits from the Department for Work and Pensions (DWP) then you’ll receive your £301 at a later date.
You can see the payment dates for HMRC benefits below.
Backdating a benefit claim
Some people could become eligible for the cost of living payment if they later backdate a benefit claim. The DWP has said that those who put in a claim for Pension Credit before May 19 this year, will be automatically eligible to get the first £301 payment. This is because Pension Credit can be backdated for three months, which would then cover the earlier qualifying period for the cash.
Claiming Tax Credits? This is when you'll receive the money
Those who receive just Working Tax Credit or Child Tax Credit from HMRC are also eligible for the £301. However, HMRC will pay this first instalment at a later date - these households will receive the cash between May 2 and May 9.
Check your payment has arrived
It is easy to see if your payment has arrived. Check your bank account for a £301 payment shown as "DWP COLP". It will appear along with your National Insurance number. Your National Insurance number is nine digits long and starts with two letters, followed by six numbers and one letter.
The cost of living cash will be paid in the same way as your usual benefit payment, so into the same bank account where you get normal payments. The code for HMRC payments is very similar and will show as "HMRC COLS".
Two follow up payments to make £900 total
Dates for the second and third instalment of the £900 cost of living payments - set to be worth £300 and £299 - have also yet to be announced. The second payment is understood to be due in summer 2023, while the third payment will be sent in spring 2024.
How will the cost of living payments affect my other benefits?
All the cost of living payments will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
Not entitled to the £900 cost of living payment? Here's other support that is coming
There will be a disability cost of living payment worth £150 being sent out during summer 2023.
This includes those in receipt of one of the following benefits:
Disability Living Allowance
Personal Independence Payment
Attendance Allowance
Scottish Disability Benefits
Armed Forces Independence Payment
Constant Attendance Allowance
War Pension Mobility Supplement
There will also be a £300 pensioner cost of living payment to all eligible households that get a Winter Fuel Payment.
The dates for both the £150 disability and £300 pensioner cost of living payments have not yet been confirmed.
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