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 expected to help millions of families across the country through the ongoing economic crisis.
However, not everyone claiming benefits 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. 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.
The guidance on GOV.UK indicates that eligibility for the 2023/24 cost of living payments will follow the same criteria as last year. This means that certain claimants will need to be in receipt of Universal Credit, along with their non-qualifying benefit to receive the first payment of £301 in a few weeks’ time.
The guidance on eligibility for the 2022/23 payments is expected to be the same for 2023/24 and states: “You will not get a payment if you were getting New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker’s Allowance, unless you were getting Universal Credit as well.”
Universal Credit ‘nil awards’
You will not be eligible for the Cost of Living Payment if your Universal Credit is reduced to £0 for the qualifying assessment period - often referred to as a ‘nil award’. Reasons your Universal Credit may be reduced to £0 for an assessment period include getting more than one payment of earnings, your or your partner’s earnings go up, your or your partner’s savings go up, you start getting another benefit.
However, if money has been taken off for other reasons such as payments of rent to your landlord or for money that you owe, you might still be eligible.
DWP previously explained that the £900 payment will be made up of three slightly different amounts (£301, £300, £299), relating to specific qualifying periods, making it simpler to determine if someone has received the correct payments.
But it also means that working Universal Credit claimants may be able to qualify for one or more of the payments, especially if they do not always get a ‘nil award’.
Cost of living payment schedule 2023/24
People who are eligible for any of the cost of living payments and receive Tax Credits, and no other means-tested benefits, will receive their payment from HM Revenue and Customs (HMRC) shortly after DWP payments have been issued.
Exact payment windows will be announced closer to the time they are due to be made, along with qualifying dates.
£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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