The new cost of living payments will begin to land in eligible claimants bank accounts from Tuesday, April 25. The sums are designed to help with increased household outgoings as a result of the current cost of living crisis. But who is eligible for the £900 pay-out, which is being handed out in three instalments by the Department for Work and Pensions (DWP)?
Millions of people are in line for the extra cash, which the DWP confirmed will start to be paid between Tuesday, April 25, and Wednesday, May 17. The three payments that make up the £900 figure will be rolled out as £301, £300 and £299 between 2023 and 2024. The differing amounts are designed to make it easier to spot which seasons payment has been made. Dates for further payments are yet to be announced, but the second payment is expected to be rolled out in autumn 2023, and the third payment in spring 2024.
To be eligible for the payment, you'll need to be on certain means-tested benefits. Here's what you need to know about the spring 2023 payment.
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According to the official Goverment website, you'll need to be claiming one of the following benefits to be eligible for the payment. These include:
Universal Credit
Income-based Jobseekers Allowance (JSA)
Income-related Employment and Support Allowance (ESA)
Income Support
Pension Credit
Child Tax Credit
Working Tax Credit
You will not get a payment if you are only getting new style ESA, contributory ESA, or new style JSA.
There is also a qualifying period during which you'll need to have been claiming. If you were entitled to a payment for one of the above benefits between Thursday, January 26, and Saturday, February 25, then you'll be eligible to receive the £301. In addition, if you received a payment for an assessment period ending between those dates, you may also be eligible.
Low-income pensioners who are not already getting Pension Credit can still qualify for the £301 if they backdate a Pension Credit application by Friday, May 19.
The payment will be made separately from the usual benefit payments. All of the cost of living payments will be tax-free, will not have any impact on existing benefit awards and won't count towards the benefit cap.
Those who receive just Working Tax Credit or Child Tax Credit - so no DWP benefits - are also eligible for the £301. However, HMRC will pay this first instalment at a later date, which has yet to be confirmed.
Eligibility for the £301 cost of living Payment explained
Universal Credit
According to the Government website, you are eligible for the first cost of living payment of £301 if you were 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 January 26, 2023, to February 25, 2023.
Income-based JSA, income-based ESA, Income Support and Pension Credit
If you were 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 January 26, 2023, to February 25, 2023, you are eligible for the first cost of living payment of £301.
You are also eligible if you are entitled to one of these benefits for any day during this period but you do not receive a benefit payment because your entitlement is between one penny and nine pence.
Tax credits
You are eligible for the first cost of living payment if you received a payment of tax credits for any day in the period January 26, 2023, to February 25, 2023, or you are later found to have been entitled to a payment for this period.
When you will not be eligible: ‘Nil awards’
You will not be eligible for the cost of living payment if your benefit is reduced to £0 for the qualifying period. This is sometimes called a ‘nil award’. For example, if you get Universal Credit, reasons your benefit may be reduced to £0 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. 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.
Disability cost of living payment
You may be entitled to a disability cost of living payment of £150 if you get any of the following benefits on a certain date:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
The Government website says this guidance will be updated with the qualifying date for the payment when it has been announced.
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