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 next round of support is expected to help millions of families across the country through the ongoing economic crisis.
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 - there’s no need to apply.
DWP 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. It also makes it harder for crooks to scam people.
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), 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.
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.
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 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.
At the time of the announcement in early January, Work and Pensions Secretary Mel Stride said: “We are sticking by our promise to protect the most vulnerable and these payments, worth hundreds of pounds, will provide vital support next year for those on the lowest incomes.”
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