When Jeremy Hunt delivered his Autumn Statement last month, a series of new cost of living payments where revealed with the aim of helping struggling households across the UK. The £26billion package included details of payments of £150 for people on disability benefits, £300 for pensioner households and £900 for those on means-tested benefits.
However, the Department for Work and Pensions (DWP) has indicated that some groups of people on means-tested benefits via DWP or HM Revenue and Customs (HMRC) won't be eligible for the extra support in 2023-24. The news was reported by Nottinghamshire Live sister publication, Daily Record.
The new cost of living support package, which is expected to be paid to recipients in two instalments, was questioned by Labour’s shadow secretary of state for work and pensions, Jonathan Ashworth. He asked DWP if it will take steps to ensure that the £900 cost of living payment will not exclude benefit claimants whose Universal Credit payments have been reduced to a nil award as a result of a sanction.
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The written response that followed on December 2 came from DWP minister Mims Davies. It confirmed that legislation for the 2023-24 cost of living payments would be presented “in due course”.
Ms Davies explained: “Claimants who were sanctioned but still had an entitlement to a Universal Credit payment of at least 1p for an assessment period ending during the qualifying periods would have been eligible to receive a 2022-23 cost of living payment.” She added that benefit sanctions are calculated with reference to the standard Universal Credit allowance only.
She continued: "We recognise many of the most vulnerable are those entitled to other elements in Universal Credit, such as housing or child costs. If a sanction is applied, claimants continue to receive these other elements and would remain eligible for cost of living payments.”
Ms Davies also explained that people determined to have a Universal Credit nil award during the qualifying assessment period could be eligible for a 2022-23 cost of living payment retrospectively if a sanction is successfully appealed, or if they are awarded a hardship payment in the qualifying period. She said: “Some 98.9 per cent of sanctions are for failing to attend a mandatory appointment at a Jobcentre, and can often be resolved quickly by claimants getting in touch with the Jobcentre and attending their next appointment.
“Hardship payments are available as a safeguard to claimants who demonstrate that they cannot meet their immediate and most essential needs - including accommodation, heating, food and hygiene - as a result of their sanction.”
What you need to know
While the qualifying period for the £900 payment has still to be announced, eligible means-tested benefits include:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
As before, people receiving Tax Credits-only will be paid separately by HMRC. Anyone receiving Tax Credits along with a qualifying benefit from DWP will be paid by DWP only. This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
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