The Department for Work and Pensions (DWP) recently confirmed that the payment window for the first part of the £900 means-tested cost of living support will open this 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. 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.
A new impact analysis of the cost of living payments includes projections of the number of payments due to be made for the £900 means-tested support and shows an increase is expected for the next payment, due this autumn.
The next lump sum is worth £300 and, according to the data, is expected to be made to 8,139,000 households across Scotland, England and Wales - an increase of 42,000 on the projected 8,097,000 payments due to be made between April 25 and May 17.
The number of payments predicted to be made for the final instalment of £299, due to be made next spring, goes up even higher and is expected to be delivered to 8,211,000 households.
It’s important to understand the use of the word ‘households’ here when talking about payments, this is because payments for the means-tested support are made per claim so a couple claiming one of the qualifying benefits would receive one payment - it’s only paid on an individual basis where the person is only claiming for themselves.
The table below shows the estimated number of payments due to be made for the £301, £300 and £299 cost of living payments.
The rise in the number of people on Universal Credit predicted to receive a payment may be due to the migration from legacy benefits, particularly Tax Credits.
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, you or your partner’s earnings go up, you 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) between May 2 and May 9, 2023.
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 of January 26 - February 25, 2023.
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 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.
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