The Department for Work and Pensions (DWP) has announced that more than eight million households on means-tested benefits are set to receive payments of up to £900, made in three lump sums, over the course of the new financial year. The first round of payments for £301 will be made automatically this Spring to those receiving a qualifying benefit.
The £900 cost of living payment will be delivered in three slightly different amounts - £301, £300 and £299. DWP said that the distinct value of each instalment relates to a specific qualifying period, to make it “simpler to determine if a payee received the correct payments” and thereby “reducing the fraud risk of people who claim not to have had one of the specific three payments” as DWP and HM Revenue and Customs (HMRC) will be able to easily track those who have.
No exact payment windows have been released yet, however, DWP said that more details will be announced nearer the time.
£900 means-tested cost of living payment
Nobody needs to apply for any cost of living payment, they will be made automatically to eligible claimants.
The payments will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
Payments for those on means-tested benefits will be made in three lump sums:
- Spring 2023 - £301
- Autumn 2023 - £300
- Spring 2024 - £299
This will be paid to eligible households receiving the following qualifying 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
People receiving Tax Credits, and no other means-tested benefits from DWP, will receive their payment from HMRC shortly after DWP payments are issued. No details have been announced for these yet.
There will also be a separate £150 Disability Cost of Living Payment this summer for more than six million people in receipt of disability benefits including Personal Independence Payment (PIP), Adult Disability Payment and Attendance Allowance.
Over eight million people of State Pension age will receive a £300 Pensioner Cost of Living Payment added to their annual Winter Fuel Payment which is usually paid between November and January.
You can find more information about cost of living payments on the dedicated GOV.UK page here.
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