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Nottingham Post
Nottingham Post
National
Linda Howard & Tom Vigar

DWP issues new update on £900 Cost of Living Payment

The Department for Work and Pensions (DWP) has issued new information on the upcoming £900 Cost of Living Payment. The first £301 instalment of the support will be made this spring and will help more than eight million households in receipt of means-tested benefits.

There will also be a £150 payment for people on disability benefits paid during the summer. And £300 will be added to the Winter Fuel Payment for pensioners, the Daily Record reports.

Earlier this week, the Social Security (Additional Payments) (No.2) Bill was approved by MPs at its second reading and will now undergo further scrutiny in Parliament. The bill outlined further details of the payments, confirming that the support will have the “same set of qualifying benefits as previously”, and that, as before, some people will qualify for more than one type of payment.

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Most payments will be made automatically with no need for people to apply. The bill also showed that the money will be tax-free and will not count towards the benefit cap or have any impact on existing benefit awards.

On the specific qualifying dates – the periods during which those eligible will be determined based on what they are receiving from the DWP in benefits at the time – the bill said these would only be confirmed after they have happened. According to the Government, this is to “limit the possibility of fraud”.

The dates will only be revealed after they have happened so that criminals cannot try and dupe the system to take advantage of the support. Work and Pensions Secretary Mel Stride told MPs: “We still recognise that despite the relief that (reducing inflation) will provide to millions up and down the country, we still need to provide further support payments.”

Those eligible for the payments do not need to apply as the money will be paid automatically. Anyone who is eligible because they receive tax credits, but who doesn't receive any other benefit, will be paid by HM Revenue and Customs (HMRC) shortly after the DWP payments are made.

Below is a guide to the qualifying benefits for each of the Cost of Living Payments.

£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 who receive Pension Credit will also qualify for the £900 means-tested Cost of Living Payment and if they are on disability benefits they will also get the £150 payment. That means that in total, someone could receive £1,350 worth of support across 2023/24.

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