MILLIONS of households across the UK will receive a £300 cost of living payment later this month.
The Department for Work and Pensions (DWP) will be sending the second cost of living payment of the year to more than eight million households in receipt of Universal Credit and other benefits.
People eligible for payments who are claiming tax credits only, who do not qualify for a payment from the DWP, will get £300 from HM Revenue and Customs (HMRC) between November 10 and 19.
Payments are tax-free, will not count towards the benefit cap and will not have any impact on existing benefit awards, the Government said.
Ready for your #UniversalCredit Switchover? See how you can prepare: https://t.co/p5ASLLU6s9 pic.twitter.com/uyRruOOIhM
— Department for Work and Pensions (@DWPgovuk) September 19, 2023
Eligible pensioner households will also get a further £300 payment later this year in addition to the winter fuel payment.
The £300 cost-of-living payment will be sent out automatically and directly to recipients, meaning those eligible do not need to apply, contact the Government or do anything to receive it.
This includes tax credits-only customers, who will receive the payment from HMRC.
The payment reference for bank accounts will be the recipient’s national insurance (NI) number followed by “DWP COL” or “HMRC COLS”.
Payments will be from October 31.
DWP £300 cost of living payment eligibility
To be eligible for the latest cost-of-living payment from the DWP, someone needs to have been entitled to a payment for a qualifying benefit between August 18 and September 17, or a payment for an assessment period, ending between these dates.
From HMRC, they need to have received a payment of tax credits for any day between August 18 and September 17.
There are several benefits that could make claimants eligible for the 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. 1.3 million 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. 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.
DWP cost of living payment dates
The exact payment dates are yet to be announced by the DWP, but this is when to expect each individual payment over the next year:
- Second cost of living payment - £300 – October 31 to November 19
- Pensioner payment - £300 – Winter 2023
- Third cost of living payment - £299 – Spring 2024
