The cost of living payment issued to certain benefit claimants will be a lifeline to many families struggling with rising prices. The package of support, announced by Chancellor Jeremy Hunt in his Budget in November, will award extra payments worth £900 to those who need it most.
The Department of Work and Pensions (DWP) had been unclear about the exact dates when payments would be made, leading many to express their frustration at the unknown. However, it was revealed today that the first payment would be made within a three-week window at the end of April.
So if you think you may be entitled to the cost of living payment, but you’re unsure, we’ve created a round-up of everything that we know so far.
Read more: DWP announces exact date £301 cost of living payment will start to hit bank accounts
What is the cost of living payment?
The cost of living payment is a one-off bonus paid to people on certain benefits. It is part of the Government’s package of support to help those who need it most during this cost of living crisis.
How much is the cost of living payment?
In total, the cost of living payment will be worth a maximum of £1350. However, only a limited number of people will be eligible to receive the full amount.
The payment is made up of
Cost of living payment: £900
Cost of living disability payment: £150
Cost of living pensioner payment: £300
Who is eligible for the cost of living payments?
£900 cost of living payment
This is for people on low-income benefits, such as Universal Credit. Here is the full list:
Child tax credit
Income support
Income-based jobseeker's allowance
Income-related employment and support allowance
Pension credit
Universal credit – unless your universal credit was reduced to £0 for the entire period between 26 January to 25 February 2023. This is sometimes called a 'nil award' and can happen where you or your partner's earnings or savings go up, you start getting another benefit or you get paid more than one set of wages within that period.
Working tax credit
£150 disability payment
You’ll also be entitled to the disability payment if you receive one of these benefits.
Attendance Allowance
Constant Attendance Allowance
Disability Living Allowance for adults
Disability Living Allowance for children
Personal Independence Payment
Armed Forces Independence Payment
War Pension Mobility Supplement
£300 pensioner payment
If you’re entitled to a Winter Fuel Payment for winter 2023 to 2024, you will get an extra £300 paid with your normal payment from November 2023. If you're eligible, you'll be sent a letter in October or November 2023 telling you how much your total winter fuel payment will be.
How will cost of living payments be made?
Payments will be made directly into the same bank account through which you receive your benefits. The £900 cost of living payment will be paid in three instalments.
£301 will be paid in Spring 2023, between April 25 and May 17.
£300 will be paid in Autumn 2023, it is expected that the date range will be revealed towards the end of August or September
£299 will be paid in Spring 2024, again, it is expected that the date range for payments will be made around December
The Government has yet to announce when the disability payment will be made other than to say that it will be during “summer 2023”. Last year, the payment was made at the end of September and it seems likely to expect a similar payment date this year.
The pensioner payment will be added to the winter fuel allowance granted each year. Notices for the payment are usually sent out around October or November, with payments being made throughout the winter season.
Beware scammers
Payments for the cost of living bonus will be paid automatically. You do not need to apply to receive it or to claim it.
Watch out for texts or emails inviting you to claim or apply for the payment – they're scams. The Department for Work and Pensions (DWP) has said it'll never ask you for personal details or banking info over text or email.
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