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Daily Record
Daily Record
Lifestyle
Linda Howard

Some people on ESA will not qualify for new £900 cost of living payment

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, people claiming disability benefits and pensioner households. The DWP also confirmed that the new £900 cash support for over eight million eligible means-tested benefits claimants will be made in three instalments - two this year and one in 2024.

Claimants on qualifying benefits, including Universal Credit, Pension Credit and Tax Credits, will see the first payment for £301 land in their bank accounts automatically this spring. However, the DWP also recently confirmed the reason why people on Contribution-based Employment and Support Allowance (ESA) will not be eligible for any of the means-tested payments.

Minister for Social Mobility, Youth and Progression, Mims Davies MP, clarified that the new £900 cost of living payment is being targeted at low income households in receipt of a “means-tested income replacement benefit” - Contribution-based ESA is a non means-tested benefit.

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