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Catherine Furze

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

The Department of Work and Pensions has corrected an error which led to the wrong date being published in information circulated to help people understand the £900 cost of living payment.

The mistake appeared in an 'Easy Read Information Sheet' designed to brief those work with people expecting the £301 payment in the next few days. According to the DWP's Touchbase newsletter, which signposted The Cost of Living Stakeholder Toolkit, it "includes everything organisations need to communicate the Cost of Living Payment with a range of resources including suggested newsletter and social media copy in English and Welsh, FAQs (Frequently Asked Questions), Easy Read information sheet and a British Sign Language video."

However, in the section about payment dates, red-faced officials gave the wrong dates for payments to those who claim Tax Credits and no other means-tested benefits. Claimants who receive legacy benefits from HMRC will be paid a week or so later than those claiming means-tested benefits such as Universal Credit, to ensure there's no duplication in payments as the DWP continues with its migration of legacy benefits over to Universal Credit.

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This time, the DWP and HMRC has widely circulated the dates Tax Credits recipients will get their money as 2-9 May, starting a week after the DWP pays the £301 payment to more than 8m people who claim means-tested benefits, such as Universal Credit. The DWP announced earlier this month that payments to those people will be between April 25 and May 17.

However advice in the leaflet clearly states: "The first payment of £301 will be paid to tax credit customers between 25 April and 17 May," meaning that thousands of hard-up families could be told to expect the money a whole week before it's actually due to arrive.

A DWP spokesperson said: “This document has been updated on gov.uk to reflect HMRC’s shorter payment window, which is within the dates previously referenced.”

More that one million households who currently receive Tax Credits, and no other means-tested benefits will get the payment, which is the first instalment of the £900 support package announced by Chancellor Jeremy Hunt during November’s Autumn Statement The second and third instalments are due later this year and early next.

More than 8m people in the UK received the £650 cost of living payment last year, but this year the payment has been increased to £900 and will be split into three payments of £301, £300 and £299. 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.

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