The Department for Work and Pensions (DWP) recently confirmed the payment schedule for the £26 billion 2023/24 cost of living support which is worth up to £1,350 for those on a low-income, people claiming disability benefits and pensioner households. The next round of support is expected to help millions of families across the country through the ongoing financial crisis.
The DWP also confirmed that the new £900 cash support for over eight million claimants will be made in three instalments - two this year and one in 2024. People on qualifying income-related benefits including Universal Credit, Pension Credit and Tax Credits will receive the first payment of £301 automatically this Spring, so there's no need to apply.
No exact payment windows have been announced yet or qualifying periods, DWP legislation states this is to prevent fraud and will be confirmed once those dates have passed. DWP has also 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.
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), the devolved 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 - this will follow the same format as winter 2023/23 payments.
DWP said exact payment windows will be announced closer to the time, adding that payments are being spread out to ensure consistent support throughout the year.
Guidance on the official Cost o Living Payments page on GOV.UK explains that eligibility criteria for the 2023/24 payments will be the same as last year. This means if you qualified last year, then you should get ti this year too - unless your circumstances have changed.
Cost of living payment schedule 2023/24
Below is the payment schedule from DWP.
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 are issued.
£900 means-tested cost of living payment
- £301 - first payment is due in Spring 2023
- £300 – second payment is due in Autumn 2023
- £299 - third payment is due in Spring 2024
This will be paid to eligible households receiving the following benefits:
- Universal Credit - you must be awarded at least one penny during the qualifying period, find out more here
- 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.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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