DWP cost of living payment: When to expect the first part of the £900 scheme and who is not entitled to the money

The cost of living payment has been a lifeline for many low-income families struggling to make ends meet as prices for everyday items rise. In his Autumn Statement in November, the Chancellor announced a further package of support for the next year.

The 2023-2024 cost-of-living payment could be worth a total of £1,350. The money has been broken down into set amounts for certain people - including £900 on means-tested benefits, £300 for pensioners and £150 for people with disabilities.

For those entitled to the means-tested £900 part, the first instalment is expected to be paid in spring. But not everyone will be able to claim.

Read more: Thousands of teenagers owed money from child trust funds that is still waiting to be claimed

Who is not eligible for the cost of living payment?

Those who are in receipt of new style employment and support allowance contributory employment and support allowance, or new style jobseeker's allowance will not be entitled to the cost of living payment unless they were also getting universal credit.

Anyone currently in receipt of Universal Credit or Pension Credit must receive an award for at least one penny during the qualifying period, the dates of this have yet to be announced. No £301 payment will be given to claimants who have a ‘nil award’.

Who is eligible for the cost of living payment?

People who are eligible for any of the cost of living payments and receive Tax Credits, and no other means-tested benefits, will receive their payment from HM Revenue and Customs (HMRC) shortly after DWP payments have been issued. Exact payment windows will be announced closer to the time they are due to be made, along with qualifying dates.

£900 means-tested cost of living payment

• £301 - first payment to be made during Spring 2023

• £300 – second payment to be made during Autumn 2023

• £299 - third payment to be made during Spring 2024

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 - 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.

£150 disability cost of living payment

• £150 - this one-off payment will be made during Summer 2023

This will be paid to eligible claimants receiving the following benefits:

• Disability Living Allowance

• Personal Independence Payment

• Adult Disability Payment

• Child Disability Payment

• Attendance Allowance

• Armed Forces Independence Payment

• Constant Attendance Allowance

• War Pension Mobility Supplement

This payment will be tax-free and will not have any impact on existing benefit awards.

£300 Pensioner Payment

• £300 - this will be added to annual Winter Fuel Payments during Winter 2023/24

Older people also in receipt of Pension Credit will also qualify for the £900 means-tested cost of living payment and the £150 payment if they are receiving support through one of the listed disability benefits. In total, pensioner households could get an income boost of £1,350 during 2023/24.

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