Chancellor Rishi Sunak recently announced a £15 billion package of further financial support for millions of households across the UK finding it increasingly more difficult to make their incomes stretch to cover the rising cost of living.
The new measures, combined with the £22 billion previously announced by the UK Government in February, means vulnerable households across the country will get £1,200 of support this year along with a £400 non-repayable discount on their electricity bill - paid directly to suppliers and discounted from bills over six months.
However, in updated guidance from the Department for Work and Pensions (DWP), who will be delivering the majority of the payments, it clarifies which benefit claimants will not be eligible for a Cost of Living Payment.
Here is everything you need to know about the revised payment guidance.
Low income benefits
You may get a payment of £650 paid in two lump sums if you are getting any of the following:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Universal Credit
If you are eligible, you will get one payment from July 2022 and a second payment in autumn 2022.
To qualify, you will need to have been entitled to one of these qualifying benefits on May 25, 2022 to get the first payment.
However DWP added: “We will update this guidance when the [UK] Government has announced the date on which you need to have been entitled to one of these qualifying benefits to get the second payment.”
Payments for joint claimants
The update also explained how if you have a joint claim with a partner and are eligible, you will receive one payment of £650 for both of you, paid in two lump sums from July 2022 and in autumn 2022.
I get a DWP benefit and Tax Credits from HMRC, who will make my payment?
The short answer is HMRC.
DWP explained: “You will not get a payment if you’re eligible for a Cost of Living Payment from HMRC because you’re entitled to Tax Credits.”
This simply means you will receive the £650 payment from HMRC later in the year - the first payment date has not been confirmed yet, but it will be in the autumn and the second one in the winter.
What happens if you get certain legacy benefits?
If you get:
- New Style Employment and Support Allowance
- New Style Jobseeker’s Allowance
The DWP advises that you will not be entitled to the £650 Cost of Living Payment unless you get Universal Credit or a disability benefit as well.
If you also get a qualifying disability benefit, you may get an additional Disability Cost of Living Payment of £150.
You will need to have been entitled to one of these qualifying benefits on May 25, 2022 to get the payment:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance
- Personal Independence Payment
- Adult Disability Payment (Scottish disability benefit)
- Child Disability Payment (Scottish disability benefit)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
DWP has also shared that payments will be made by the end of September 2022.
Tax Credits
You may get the first lump sum of the total £650 payment in the autumn if you were getting any of these benefits on May 25, 2022:
- Child Tax Credit
- Working Tax Credit
If you are eligible, you will get one payment from autumn 2022 and a second from winter 2022 - DWP will update guidance for that qualifying date when it has been confirmed.
However, it advised: “If you have a joint claim with a partner, you will get one payment of £650 for both of you, paid in two lump sums in autumn 2022 and in winter 2022.
“You will not get a payment if you’re eligible for a Cost of Living Payment from DWP because you’re getting a low-income benefit.”
But it added: “If you also get a qualifying disability benefit, you may get an additional Disability Cost of Living Payment from DWP.”
The rules on qualifying for the £150 disability payment are higher up in this article.
You can read the full amendments to the Cost of Living Payments on GOV.UK here.
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