The Department for Work and Pensions (DWP) recently announced the payment schedule for the next wave of cost of living support worth up to £1,350 for those on a low-income, claiming disability benefits and pensioner households. The next round of support is worth £26 billion and expected to help millions of families across the country through the ongoing economic crisis.
However, not everyone claiming Universal Credit (UC) will automatically qualify for the £900 means-tested payment which is due to be made in three lump sums over the course of the new financial year. The self-employed and those in work must be awarded at least one penny in any of the three qualifying periods - not yet announced - to receive a payment of £301, £300 or £299.
DWP Minister Mims Davies MP, said the three payment periods over 2023 and 2024 “reduces the chance of someone missing out altogether as those who do not qualify for one of the payments due to their changing circumstances, may qualify for another one of the payments”.
The Minister for Social Mobility, Youth and Progression also explained in a written response to Labour MP Nadia Whittome that eligibility rules for the 2023/24 cost of living payments have been kept “as simple as possible to deliver them promptly and accurately” to millions of people across Great Britain.
Ms Whittome asked DWP if there were “plans to extend the eligibility criteria for the cost of living payment to include people who are self-employed on low incomes and receive a nil Universal Credit award”.
Ms Davies responded: “The Government recognises the importance of self-employment to the economy, and believes it is right that, once people are in work, they should become more financially independent and less reliant on benefits.
“The Minimum Income Floor encourages self-employed UC claimants to progress in work and increase their earnings through developing their business.
“It also limits state support for those who persistently declare very low self-employed earnings - a situation which is unsustainable and unfair on the taxpayer, and a poor outcome for claimants.”
You can read the full response online here.
Cost of living payments 2023/24
Eligible individuals do not need to apply for payments, as they are made automatically and those eligible for cost of living payments through Tax Credits, and no other means-tested benefits, will be paid by HM Revenue and Customs (HMRC) shortly after DWP payments are made.
Below is a guide to qualifying benefits for each of the cost of living payments.
£900 means-tested cost of living payment
- £301 - first payment to be made during Spring 2023
- £300 – second payment to be made during Autumn 2023
- £299 - third payment to be made during Spring 2024
This will be paid to eligible households receiving 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 will 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
This will be paid to eligible claimants receiving the following benefits:
- 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 will 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 and 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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