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Catherine Furze

DWP £301 cost of living payment starts hitting bank accounts today - but not for everyone

Almost 400,000 North East families waiting for their first cost of living payment of 2023 have been warned that most will not receive it today.

The £301 payment, the first of three which make up the £900 DWP support package announced by Chancellor Jeremy Hunt during November’s Autumn Statement, will be paid to Universal Credit claimants from Tuesday, April 25, but the DWP said only around 20% of the 8m people eligible to receive the money in the UK will be paid today.

A spokesperson said: "We are expecting 1.6 million people to get paid on April 25, with the same number again on Wednesday and Thursday – so that’s 4.8m to be paid this week. The vast, vast majority of all those eligible should receive it before the end of next week."

Read more: DWP blunder causes £301 cost of living payment confusion on when cash will be paid

Last year, more than 8m people in the UK received the £650 cost of living payment, and many concerned people took to social media when they did not receive their payment on the first day due. This time round, the full window for payments is April 25 to May 17 for people receiving Universal Credit and the DWP has moved to limit expectations by saying that most people will not receive their money on April 25, although the expectation is that most payments should be processed well in advance of May 17.

Families in receipt of Tax Credits and other eligible legacy benefits will get their money from May 2-9 , a week later to avoid duplicate payments if families are transferring to Universal Credit.. The Government has refused to release exact dates when the second and third payments will hit people's bank accounts this year, just Autumn 2023 and Spring 2024. But as it has already stated that payments will all be made in the 2023/2024 financial year, the last sum should be paid before April 5, 2024.

There will also be a separate £150 for over 6m disabled people nationwide and £300 for another 8m pensioners on top of their Winter Fuel Payments to help them meet their energy bills coming later this year.

According to the DWP, which first announced its plan to issue the £900 on January 3, The £301 payment will be sent out automatically and directly to recipients, meaning those eligible do not need to apply or do anything to receive it. The payment reference for bank accounts will be DWP COLP, along with the claimant’s National Insurance number.

In a small minority of complex circumstances, claimants may be paid automatically after May 17 – for example, if they were deemed unable to claim certain benefits, but won backdated entitlement on appeal, or where payments were rejected due to invalid account details. The DWP says it will seek to contact claimants directly where there are issues or delays.

Mel Stride, Secretary of State for Work and Pensions, said: "“This latest additional payment will be welcomed by millions of families – as will further payments due over the next year. We have continually supported those most vulnerable to rising costs, including through record benefits and national living wage increases as well as these exceptional cost of living payments responding to the global pressures we are facing. We will also continue to deliver on our five priorities, including halving inflation, as this will ease pressure on households currently struggling with household bills and rising prices.”

Chancellor Jeremy Hunt said: "The best thing we can do to help people’s money go further is deliver on our priorities to halve inflation and grow the economy. But we’re also here to help people through these tough times, which is why we’re holding down energy bills, freezing fuel duty, increasing Universal Credit, and giving £900 payments to low income and vulnerable families - all in part funded through windfall taxes on energy profits.”

To be eligible for the payment, you need to have been entitled to a payment for one of these benefits between 26 January and 25 February 2023, or payment for an assessment period ending between these dates:

  • Universal Credit
  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Working Tax Credit
  • Child Tax Credit
  • Pension Credit

The payment will be made separately from your benefit and the date your benefit is due will have no bearing on the date your cost of living payment arrives.

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