More than seven million households across the UK have now received a £301 cost of living payment directly from the Department for Work and Pensions (DWP). A ‘small number’ of payments have still to be made and will continue until May 17, 2023.
HM Revenue and Customs (HMRC) is making direct payments to more than one million families in receipt of Tax Credits - the payment window opened on May 2 and will close on May 9. The payments are part of a package of wider UK Government support announced to tackle the cost of living in 2023-24, including a further £300 for eligible claimants in the autumn, with a final lump sum of £299 due in spring 2024.
A new impact analysis of the cost of living payments includes projections of the number of claimants due to receive the next round of support in the autumn - and it shows a significant increase.
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 is most-likely 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 eligibility
You are eligible for the £301 cost of living payment if you were entitled to a payment, or later found to be entitled to a payment, of Universal Credit for an assessment period that ended in the period January 26, 2023, to February 25, 2023.
Universal Credit ‘nil awards’
Updated guidance on GOV.UK explains: "You will not be eligible for the Cost of Living Payment if your benefit is reduced to £0 for the qualifying period. This is sometimes called a ‘nil award’.
Reasons your benefit may be reduced to £0 include:
- you got more than one payment of earnings in your Universal Credit assessment period
- your or your partner’s earnings went up
- your or your partner’s savings went up
- you started getting another benefit
- you got a ‘sanction’ because you did not do something you agreed in your claimant commitment
You may still be eligible for a Cost of Living Payment if your benefit is reduced to £0 and one of the following applies:
- money was taken off your benefit for other reasons, such as payments of rent to your landlord or for money that you owe
- you had a hardship payment because you got a sanction and could not pay for rent, heating, food or hygiene needs
Joint claims
If you have a joint claim on the qualifying dates, a single payment of £301 will be sent using the same payment method, if you’re eligible.
Pension Credit and other income-related benefits
Guidance on GOV.UK explains that people on Income-based JSA, income-based ESA, Income Support and Pension Credit will be due the £301 payment if they were entitled to a payment - or later found to be entitled to a payment - of those benefits for “any day in the period January 26, 2023 to February 25, 2023”.
It adds: “You are also eligible if you are entitled to one of these benefits for any day during this period but you do not receive a benefit payment because your entitlement is between 1 penny and 9 pence.”
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 an application for Pension Credit application before May 19, 2023, which later turns out to be successful.
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 (January 26 - February 25).
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.
Tax Credits
People on Working Tax Credits or Child Tax Credits and a qualifying DWP benefit will receive their payment from DWP between April 25 and May 17, 2023. For those in receipt of Tax Credits-only, the payment will be made through HMRC between May 2 and May 9, 2023.
You will be eligible for the £301 payment if you received a payment of Tax Credits for any day in the period January 26, 2023, to February 25, 2023, or you are later found to have been entitled to a payment for this period.
The scam warning applies to anyone due a cost of living payment this year, including the £150 payment for those on disability benefits and pensioner households due the £300 payment on top of the 2023/24 Winter Fuel Payment.
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
- Millions of people on a low income urged to check for social tariff broadband package
DWP says ‘small number’ of outstanding £301 cost of living payments still to be made
Petition calling for new monthly energy tariff for pensioner and disabled households due response
New inquiry launches into cost of living payments to determine if support fair for everyone
New cost of living payment warning to 8m people who received any money last year
