A Government minister has explained why not all benefit claimants will receive the £900 cost of living payment. The first part is due to be paid in spring as part of efforts to ensure that people can manage through the cost of living crisis.
Over the course of the financial year, payments of up to £1,350 will be made to those most vulnerable to cost increases. Claimants that are on qualifying benefits, including Universal Credit, Pension Credit and Tax Credits, will receive the first payment for £301 automatically in the coming months without the need to apply.
The DWP (Department of Work and Pensions) has confirmed however that not all people receiving benefits will be included. This is because the cost of living payment is only applicable to those on means-tested benefits. Those on Contribution-based Employment and Support Allowance (ESA) will not be eligible, LancsLive reports.
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Labour’s Dame Angela Eagle MP asked in a written query: "For what reason the Department has decided that those in receipt of Contribution-based Employment Support Allowance and who do not receive Universal Credit are not eligible for Cost of Living Support payments?"
Minister for Social Mobility, Youth and Progression, Mims Davies MP, replied: "The cost of living payment is being targeted at low income households who are in receipt of a means-tested income replacement benefit. Contribution-based Employment and Support Allowance is a non means tested benefit.
"Non-means tested benefits are not qualifying benefits for the cost of living payment in their own right because people receiving these benefits may have other financial resources available to them."
The DWP minister then outlined the additional UK Government support being paid to millions of households in 2023/24: "This payment comes on top of extensive [UK] Government support with the cost of living," she said, "including six million disabled people having been paid a separate £150 Disability Cost of Living Payment."
Over eight million people of State Pension age will receive a £300 Pensioner Cost of Living Payment added to their annual Winter Fuel Payment. DWP has previously said that exact payment windows will be announced closer to the time, adding that payments are being spread out to ensure consistent support throughout the year.
Cost of living schedule 2023/24 of £900 means-tested payments
- £301 - first payment during Spring 2023
- £300 – second payment during Autumn 2023
- £299 - third payment during Spring 2024
Eligible households will receive 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 is promised to 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
Eligible claimants are those on:
- 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 is promised to 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 as well as 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.
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