The Chancellor's Autumn Statement brought about the announcement that a new cost of living payment will be given to more than eight million households.
This payment, worth £900, will be provided to those on certain means-tested benefits delivered by the Department for Work and Pensions (DWP) and Tax Credits from the HMRC. Nottinghamshire Live reports that the eligibility criteria was yet to be announced by the Government.
Now, this has all been cleared up on who will qualify for the new cost of living payment. Chancellor Jeremy Hunt noted that the new support package, worth £26 billion, would also include payments of £150 for people on disability benefits, and £300 for pensioner households.
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Labour’s shadow secretary of state for work and pensions, Jonathan Ashworth MP, asked the DWP if they will take the necessary steps to ensure that the new payment will not exclude benefit claimants whose Universal Credit payments have been reduced to a nil award as a result of a sanction.
In a written response on December 2, DWP Minister Mims Davies MP confirmed that legislation for the 2023/24 cost of living payments will be brought forward “in due course”.
She explained: "We will be bringing forward legislation for the 23/24 Cost of Living Payments in due course.
"Claimants who were sanctioned but still had an entitlement to a Universal Credit payment of at least 1p for an assessment period ending during the qualifying periods would have been eligible to receive a 2022/23 cost of living payment.”
She added that the benefit sanctions are calculated with reference to the standard Universal Credit allowance only.
The Minister continued: "We recognise many of the most vulnerable are those entitled to other elements in Universal Credit, such as housing or child costs. If a sanction is applied, claimants continue to receive these other elements and would remain eligible for cost of living payments.”
So, who will qualify for the new cost of living payment? Find out more below.
Cost of living payment 2023/23 - £900: Who qualifies?
The qualifying period for the £900 payment has still to be announced. However, the list of benefits that will mean people will be eligible are listed as the following:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
As it has been stated previously, those receiving just Tax Credits will be paid by HMRC separately. Anyone receiving Tax Credits alongside a qualifying DWP benefit will be paid by the DWP instead.
This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
More information can be found on the Department for Work and Pensions website.
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