The Department for Work and Pensions (DWP) has confirmed that the payment window for the first part of the £900 means-tested cost of living support will open next month. More than eight million households across Great Britain, including 686,000 in Scotland, will receive £301 directly into their bank account from the DWP between Tuesday, April 25 and Wednesday, May 17.
The £301 payment will be sent out automatically to the account used by claimants for their qualifying benefit, which means nobody needs to apply for the financial support - if you receive a text, email or phone call asking you to make a claim for any cost of living payment, it is a scam. Payments will appear on accounts as ‘DWP COLP’, along with the claimant’s National Insurance number.
To be eligible for the £301 cost of living payment, you need to have been entitled to a payment for one of the qualifying benefits listed below between January 26, 2023 and February 25, 2023, or payment for an assessment period ending between these dates.
Qualifying benefits for £301 payment
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 - will be 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.
Universal Credit ‘nil awards’
You will not be eligible for the £301 cost of lLiving Payment if your Universal Credit is reduced to £0 for the qualifying assessment period - often referred to as a ‘nil award’.
Reasons your Universal Credit may be reduced to £0 for an assessment period include getting more than one payment of earnings, your or your partner’s earnings go up, your or your partner’s savings go up, you start getting another benefit.
However, if money has been taken off for other reasons such as payments of rent to your landlord or for money that you owe, you might still be eligible.
£301 for people on Tax Credits
Those who are eligible for the £301 cost of living payment solely through Tax Credits, and are not eligible through DWP means-tested benefits, will be paid by HM Revenue and Customs (HMRC) shortly after DWP payments begin on April 25.
HMRC will publish specific details of when payments will be made to these claimants along with the bank account payment reference.
For Tax Credit-only customers to be eligible they must have received a payment of Tax Credits in respect of any day in the period January 26, 2023 to February 25, 2023, or later be found to have been entitled to a payment for this period.
New Pension Credit claims and £301 payment
The DWP is also encouraging low-income pensioners not already getting Pension Credit to check their eligibility, as they can still qualify for the £301 cost of living payment if they make a successful Pension Credit application by May 19, 2023.
This is because Pension Credit is a retrospective benefit that can be backdated by up to three months, taking it to within the qualifying period.
People can check their eligibility for Pension Credit using the online calculator on GOV.UK here or by calling the Pension Credit helpline on 0800 99 1234.
Other cost of living payments on the way
The £301 payment is the first of three lump sums totalling up to £900 for those eligible and on means-tested benefits in 2023/24.
This follows the £650 cost of living payment made to over eight million people in 2022.
There will also be further payments worth £150 for eligible disabled people and £300 for people of State Pension age due later this year, meaning the most vulnerable can receive up to £1,350 in direct payments.
Commenting on the upcoming financial support, Mel Stride, Secretary of State for Work and Pensions, said: “These payments will give a financial boost to more than eight million households as we continue to wrap our arms around the most vulnerable, while the best way we can protect people from high costs is to halve inflation by the end of this year.
“In the long-term, we know work is the best route out of poverty, which is why we recently announced additional Work Coach support to help more people find work or increase their hours. Anyone looking to boost their skills or progress their career should speak to their work coach to ensure they’re accessing all the support the DWP can provide.”
Jeremy Hunt, Chancellor of the Exchequer, added: “I know that times are tough, which is why a key focus of the Spring Budget was supporting people with the cost of living and helping people into well-paid work.
“Not only are we providing £900 in direct cash payments to millions of the most vulnerable households, we’ve also extended the Energy Price Guarantee to hold bills down until energy prices fall, raised the National Living Wage to £10.42, put an end to the prepayment meter premium and delivered a plan that will more than halve inflation this year - ensuring everyone’s incomes go further.”
Other financial help available
Low-income households are also encouraged to contact their local council to see what support is available for essential food and energy costs.
You can find out more information about cost of living help from your local council on the Scottish Government’s cost of living support website here.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
READ NEXT
Check your eligibility for £150, £300 and £601 cost of living payments
New cost of living payment warning to people due money over next few months
- Scottish families affected by DWP benefit cap urged to apply for financial help from local council
DWP to fast-track disability payments for thousands of people in final year of life from April
