The Department for Work and Pensions (DWP) has updated its cost-of-living guidance.
The DWP confirmed more than eight million low income households across the UK will receive £650 in financial aid to help with mounting costs as the price of energy, food and petrol skyrocket. The payment will be split into two instalments as eligible claimants will receive £326 between July 14 and July 31 with a further £324 due to land in bank accounts in the autumn.
As the pay date draws nearer, DWP has made amendments to the online cost of living guidance "to improve clarity" for the upcoming payment. It said: "Added a table to show the amount of the Cost of Living Payment you'll get and when you'll be paid if you are on a low income benefit from DWP or Tax Credits from HMRC [HM Revenue and Customs].
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"Made other amendments to improve clarity.” - as The Daily Record reports.
Here are the key updates on the GOV.UK website, which apply to people in Scotland, England and Wales. Guidance for those in Northern Ireland, can be found on the NIDIRECT.GOV website here.
Cost of Living support
You could get up to three different types of payment depending on your circumstances on a particular date or during a particular period:
- a Cost of Living Payment, if you get a qualifying low income/means-tested benefit or Tax Credits
- a Disability Cost of Living Payment, if you get a qualifying disability benefit
- a Pensioner Cost of Living Payment, if you’re entitled to a Winter Fuel Payment for winter 2022 to 2023
Who does not qualify for the £650 payment?
You will not be eligible for a payment if you get New Style Employment and Support Allowance, Contributory Employment and Support Allowance or New Style Jobseeker’s Allowance, unless you get Universal Credit.
Qualifying low income benefits and Tax Credits
You may be eligible for a payment of £650 paid in two lump sums of £326 and £324 if you get payments of any of the following:
- Universal Credit
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
If you have a joint claim with a partner, you will get one payment of £326 and one payment of £324 for your joint claim - if you are eligible.
Universal Credit
To get the first Cost of Living Payment of £326, you must have been 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 April 26, 2022 to May 25, 2022.
DWP will update the guidance on GOV.UK when the UK Government has announced the qualifying dates to get the second payment of £324.
The payment will be made separately from your benefit and will appear in your bank, building society or credit union account, or on your Payment Exception Service voucher receipt, as ‘DWP Cost of Living’.
Universal Credit ‘nil awards’
You will not be eligible for the £326 Cost of Living Payment if your earnings reduced your Universal Credit to £0 for the qualifying assessment period - this is sometimes called a ‘nil award’.
If money has also been taken off for other reasons, such as payments of rent to your landlord or for money that you owe, you may still be eligible.
Income-based JSA, Income-based ESA, Income Support and Pension Credit
To get the first Cost of Living Payment of £326, you must have been entitled to a payment, or later found to be entitled to a payment, of Income-based JSA, Income-related ESA, Income Support or Pension Credit for any day in the period April 28, 2022 to May 25, 2022.
Tax Credits
To get the first Cost of Living Payment of £326, you must have received, or later receive, for any day in the period April 26, 2022 to May 25, 2022:
- A payment of Tax Credits
- An annual award of at least £26 of Tax Credits
If you get both Child Tax Credit and Working Tax Credit, you will receive a Cost of Living Payment for Child Tax Credit only.
If you get Tax Credits from HMRC and a low income benefit from DWP, you will get a Cost of Living Payment from DWP only, starting from July 14.
If you only receive Tax Credits, you will get the first payment of £326 from autumn 2022 and the second payment of £324 from winter 2022 - a date for the first payment has not yet been announced.
Backdated Cost of Living payments
Your payment may come later, for example if you are awarded a qualifying benefit at a later date or you change the account your benefit or Tax Credits are paid into.
You will still be paid the Cost of Living Payment automatically and do not need to contact DWP or HMRC.
What’s the maximum someone could get this year?
This question has been asked many times in the Daily Record Money Saving Scotland Facebook group, but it really depends on your circumstances.
For example, if you are under State Pension age and on Universal Credit, but also claim Personal Independence Payment (PIP), you could be due £800 - £650 for means-tested payment and £150 for disability payment.
Similarly, someone over State Pension age claiming Pension Credit and PIP, could be due £800 (as above) plus the additional £300 Pensioner Cost of Living Payment which is being added to Winter Fuel Payments in November/December.
If you have a complex set of benefits, contact DWP or an independent benefits advisor such as Citizens Advice to get a better understanding of what help you will receive.
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