The Department for Work and Pensions (DWP) has specified its criteria for people claiming Tax Credits who will receive their first half of the £650 cost of living payment next month.
It is believed that over one million recipients across the UK who are working or claiming child tax credit will receive a one-off payment of £326 in September. Meanwhile, those who are claiming a qualifying benefit from the DWP such as Universal Credit should have already received the first half of the total cost of living payment in July.
However, those who receive their benefits from HMRC will get the upcoming payment in autumn. The DWP has explained which Tax Credits claimants will qualify for the payment by issuing an official cost of living factsheet on Gov.uk, the Daily Record reports.
Read more: What was life like the last time inflation was this high in 1982?
Who's eligible for the £326 one-off cost of living payment
In order for Tax Credits claimants to receive the one-off payment, the DWP states that they must have been entitled, or later found to be entitled, during April 26, 2022 to May 26, 2022 to:
- A payment of Tax Credits
- An annual award of at least £26 of Tax Credits
- If you receive Child Tax Credit and Working Tax Credit, you will only receive a cost of living payment for the Child Tax
It's also important to note that if you receive Tax Credits form HMRC as well as a low-income benefit from the DWP, you will only get a cost of living payment from the DWP. The second half of the £650 payment is expected to land in peoples' bank accounts this winter - however, no official date has yet been issued.
Eligibility for different cost of living support
Depending on your circumstances, you could receive up to three different types of cost of living payments during a certain period.
£650 Cost of Living Payment
- If you get a qualifying low income/means-tested benefit or Tax Credits - paid in two instalments of £326 and £324
- This is paid per claim, so a couple claiming would qualify for one payment
£150 Disability Cost of Living Payment
- If you get a qualifying disability benefit
- This is paid per individual claim
£300 Pensioner Cost of Living Payment
- If you’re entitled to a Winter Fuel Payment for winter 2022 to 2023 this will be added to your entitlement
- This is paid per claim, so a couple claiming would qualify for one payment
Examples of stacked support payments
- If you are claiming Universal Credit and Personal Independence Payment, you will be eligible for £800 in support - £650 means-tested payment and the £150 disability payment.
- A person of State Pension age, claiming Pension Credit and Attendance Allowance would be eligible for £1,100 in support - the £650 means-tested payment, £150 disability payment and the £300 pensioner payment.
Qualifying benefits and Tax Credits
You may be eligible for the £650 cost of living payments if you receive one of the following:
- Universal Credit - you must have been entitled to a payment of at least 1p during the assessment period of April 26, 2022 to May 25, 2022
- Income-based Jobseeker’s Allowance (JSA) - received a payment between April 26, 2022 to May 25, 2022
- Income-related Employment and Support Allowance (ESA) - received a payment between April 26, 2022 to May 25, 2022
- Income Support - received a payment between April 26, 2022 to May 25, 2022
- Pension Credit - received a payment between April 26, 2022 to May 25, 2022
- Child Tax Credit
- Working Tax Credit
- Special note about Tax Credits
- The first cost of living payment of £326 will be paid in September.
You will not be eligible for the £650 payment if you receive New Style Employment and Support Allowance, Contributory Employment and Support Allowance or New Style Jobseeker's Allowance - except if you also receive Universal Credit.
September - £150 disability cost of living payment
To qualify for the payment, you must have received a payment (or later receive a payment) of one of these benefits on May 25, 2022:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment
- Child Disability Payment
- Armed Forces Independence Payment
- War Pension Mobility Supplement
- If you get a qualifying disability benefit from the Ministry of Defence (MOD) and a qualifying disability benefit from DWP, you will get one £150 payment from DWP only.
£400 energy rebate for October
All households across the country will be eligible for a £400 discount on their bills from October. This should be paid automatically so there will be no need to contact your energy supplier.
The discounts will be rolled out by suppliers and directly paid to customers over six months in the following instalments:
- October - £66
- November - £66
- December - £67
- January - £67
- February - £67
- March - £67
If you use a traditional prepayment meter, you will b provided with redeemable vouchers or Special Actions Messages (SAMs) in the first week of each month via text message, email or post. You can take these vouchers to your usual top-up point to have the discount applied.
November/December - £300 pensioner cost of living payment
Pensioner households may be eligible for a one-off payment which will be added onto their annual Winter Fuel Payment in November/December. In order to qualify for the payment, someone in the household must be of State Pension age (66 or over) during the week of September 19-25, 2022 and also receive the Winter Fuel Payment.
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