The DWP issued an update on the cost of living payment which should be paid to households this month. Households who believe they have been wrongly denied a cost of living payment can challenge the decision with their local benefits office.
The Department for Work and Pensions ( DWP ) says it is using a computer program to identify who is eligible for the cash payment. In updated guidance on its website, it said if you disagree with a decision made by the computer program you should contact the office which pays your benefit to explain why.
More than eight million low-income households will receive a £650 payment from the government in a bid to ease cost of living pressures. The first lump sum of £326 is scheduled to arrive between July 14 and the end of the month, with the remaining £324 coming later in the year.
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The DWP's updated guidance reads: "DWP is using a computer program to identify who should get a Cost of Living Payment. If you disagree with this, contact the office that pays your benefit and tell them why you disagree."
DWP minister David Rutley said in response to a written question in Parliament that issuing payments "will be staggered" due to the high volume of people entitled to the payment. He also warned: "We currently expect the majority of payments to be made by the end of July, there may be potential delays for a small minority of cases due to their unique characteristics."
Who is eligible for the £650 cost of living payment?
People who are eligible for the cost of living payment do not need to apply. The DWP is using a computer program to determine eligibility for the first £326 based on whether households claimed – or were entitled to – certain benefits between April 26 and May 25:
Low-income benefits
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
Tax credits
- Child Tax Credit
- Working Tax Credit
Those in receipt of disability benefits may receive a lump sum payment of £150 to help with the cost of living. This is separate from the £650 payment.
The winter fuel payment is increasing by £300 as part of the government package. This is also separate from the £650 cost of living payment.
The cost of living payment is not taxable and will not affect any other benefits or tax credits you might get. More information about the scheme can be found on the DWP website.
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