An estimated 8 million people will start receiving the first of the means-test cost of living payments in their bank accounts this week. Payments for £326 will be made by the Department for Work and Pensions (DWP) between Thursday, July 14 and 31.
The second payment, for £324, will be made in the autumn, however, there is still no further details on when this will happen. People on a low income, claiming at least one of the seven qualifying benefits will receive the cash boost.
However, many people are still confused about when they will be paid and by which department if they receive Working Tax Credits or Child Tax Credits either as a standalone payment from HM Revenue and Customs (HMTC) or along with a qualifying DWP benefit.
HMRC recently launched a new pre-recorded message on the Tax Credits phone helpline which states that anyone who receives Tax Credits AND a qualifying DWP benefit will receive the £326 payment from the DWP from July 14.
Claimants who only receive a Tax Credits payment will get their first payment in the autumn and the second in the winter.
The audio message states: “The Cost of Living Payment is being made in two instalments for people who claim Tax Credits.
“If you also receive an income-related benefit from the Department for Work and Pensions, you will get your first instalment from July 14.
“If you receive Tax Credits only, you will get your first instalment from the autumn.
“You do not have to do anything in order to get the payment, if you are eligible, payments will be made automatically.”
The Cost of Living Payment guidance on GOV.UK has also been updated to reflect the new information and provide clarity on the payments and eligibility criteria.
Here are the key updates about all payments on the GOV.UK website, which apply to people in Scotland, England and Wales. Guidance for those in Northern Ireland, can be found on the NIDIRECT.GOV website here.
Cost of Living support payments
You could get up to three different types of payment depending on your circumstances on a particular date or during a particular period:
- a Cost of Living Payment, if you get a qualifying low income/means-tested benefit or Tax Credits
- a Disability Cost of Living Payment, if you get a qualifying disability benefit
- a Pensioner Cost of Living Payment, if you’re entitled to a Winter Fuel Payment for winter 2022 to 2023
Who does not qualify for the £650 payment?
You will not be eligible for a payment if you get New Style Employment and Support Allowance, Contributory Employment and Support Allowance or New Style Jobseeker’s Allowance, unless you get Universal Credit.
Qualifying low income benefits and Tax Credits
You may be eligible for a payment of £650 paid in two lump sums of £326 and £324 if you get payments of any of the following:
- Universal Credit
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
If you have a joint claim with a partner, you will get one payment of £326 and one payment of £324 for your joint claim - if you are eligible.
Universal Credit
To get the first Cost of Living Payment of £326, you must have been entitled to a payment - or later found to be entitled to a payment - of Universal Credit for an assessment period that ended in the period April 26, 2022 to May 25, 2022.
DWP will update the guidance on GOV.UK when the UK Government has announced the qualifying dates to get the second payment of £324.
The payment will be made separately from your benefit and will appear in your bank, building society or credit union account, or on your Payment Exception Service voucher receipt, as ‘DWP Cost of Living’.
Universal Credit ‘nil awards’
You will not be eligible for the £326 Cost of Living Payment if your earnings reduced your Universal Credit to £0 for the qualifying assessment period - this is sometimes called a ‘nil award’.
If money has also been taken off for other reasons, such as payments of rent to your landlord or for money that you owe, you may still be eligible.
Income-based JSA, Income-based ESA, Income Support and Pension Credit
To get the first Cost of Living Payment of £326, you must have been entitled to a payment, or later found to be entitled to a payment, of Income-based JSA, Income-related ESA, Income Support or Pension Credit for any day in the period April 28, 2022 to May 25, 2022.
Tax Credits
To get the first Cost of Living Payment of £326, you must have received, or later receive, for any day in the period April 26, 2022 to May 25, 2022:
- A payment of Tax Credits
- An annual award of at least £26 of Tax Credits
If you get both Child Tax Credit and Working Tax Credit, you will receive a Cost of Living Payment for Child Tax Credit only.
If you get Tax Credits from HMRC and a low income benefit from DWP, you will get a Cost of Living Payment from DWP only, starting from July 14.
If you only receive Tax Credits, you will get the first payment of £326 from autumn 2022 and the second payment of £324 from winter 2022 - a date for the first payment has not yet been announced.
Backdated Cost of Living payments
Your payment may come later, for example if you are awarded a qualifying benefit at a later date or you change the account your benefit or Tax Credits are paid into.
You will still be paid the Cost of Living Payment automatically and do not need to contact DWP or HMRC.
What’s the maximum someone could get this year?
This question has been asked many times in the Daily Record Money Saving Scotland Facebook group, but it really depends on your circumstances.
For example, if you are under State Pension age and on Universal Credit, but also claim Personal Independence Payment (PIP), you could be due £800 - £650 for means-tested payment and £150 for disability payment.
Similarly, someone over State Pension age claiming Pension Credit and PIP, could be due £800 (as above) plus the additional £300 Pensioner Cost of Living Payment which is being added to Winter Fuel Payments in November/December.
If you have a complex set of benefits, contact DWP or an independent benefits advisor such as Citizens Advice to get a better understanding of what help you will receive.
£150 if you get certain disability benefits
You may get a lump sum payment of £150 if you’re getting any of the following:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment
- Child Disability Payment
- Armed Forces Independence Payment
- War Pension Mobility Supplement
Eligibility
You must have received a payment (or later receive a payment) of one of these qualifying benefits for May 25, 2022 to get the payment.
If you get a qualifying disability benefit from the Ministry of Defence (MOD) and a qualifying disability benefit from DWP, you will get a Disability Cost of Living Payment from DWP only.
When you will get paid
Payments will be made from September 2022.
If you also get a qualifying low income benefit or Tax Credits, you may get an additional Cost of Living Payment.
£300 one-off payment for people of State Pension age
All eligible pensioner households will get the one-off ‘Pensioner Cost of Living Payment’ added as a top-up to their annual Winter Fuel Payment in November/December.
We have a full guide to all the different household combinations that qualify for the £300 payment here.
Eligibility
People will be eligible for this payment if they are over State Pension age (aged 66 or above) between 19-25 September 2022 and in receipt of the Winter Fuel Payment
The £300 is not taxable and will be paid on top of any other one-off support a pensioner household is entitled to, for example where they are on Pension Credit or receive disability benefits
The payment does not affect eligibility for other benefits
Who does not qualify for £300 payment?
There are certain circumstances where an individual above State Pension age does not qualify for the Winter Fuel Payment which can be found on GOV.UK, here
We have a full breakdown of all the Winter Fuel Payment scenarios here.
When you will get paid
Payments will be made over November and December.
£400 discount off energy bills
The UK Government will pay the £400 directly to energy suppliers who will deliver this support to households with a domestic electricity account over six months from October.
Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher - this will depend on whether they have a smart meter or not.
Who qualifies for the £400 energy bill grant:
- Domestic energy users in Scotland, England and Wales - equivalent support will be delivered to people in Northern Ireland
Other key points about the payment:
- The £400 does not need to be repaid
- This support is on top of the £150 Council Tax rebate for households in bands A-D (and with a reduction in Scotland), which was announced in February, and which millions of households have already received
You can read detailed examples of how the additional support packages will affect different types of households on he GOV.UK website here.
To keep up to date with the most-read money stories, subscribe to our newsletter which goes out three times each week - sign up here.
