The Department for Work and Pensions are offering an extra payment to help with the cost of living to some people on certain benefits or tax credits. A £650 payment will be given to help with the rising cost of day to day life.
Those who are eligible will be paid automatically in the same way as they would receive benefits or tax credits. There are three types of payments depending on individual circumstances and the payments are not taxable and will not affect other benefits.
There is a Cost of Living Payment for people who get a qualifying low income benefit or tax credits, a Disability Cost of Living Payment for those who get a qualifying disability benefit and a Pensioner Cost of Living Payment, if entitled to a Winter Fuel Payment for winter 2022 to 2023.
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To get the payment of £650, you would have to be on Universal Credit, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), Income Support, Pension Credit, Child Tax Credit or Working Tax Credit.
Who is not entitled?
The Cost of Living Payment will not be given to people who are on New Style Employment and Support Allowance. You will also not get the payment if you are on contributory Employment and Support Allowance or New Style Jobseeker’s Allowance.
If you are on one of those benefits but also get Universal Credit, you may be eligible. You can also not be eligible for the payment if your earnings reduced your Universal Credit to £0 for the qualifying assessment period.
This is sometimes called a Universal Credit 'nil award'. If the money has been taken off you for other reasons such as payments of rent or for money that you owe, you might still be eligible.
The DWP and HMRC are using a computer programme to identify those who are eligible for the Cost of Living Payment. If you are not content with their assessment, you can contact the office that pays your benefit or tax credits to discuss it.
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