The Department for Work and Pensions (DWP) has issued an urgent warning to millions of people due to receive the first instalment of the £650 means-tested cost of living payment this month. Payments for £326 started landing in bank accounts on July 14 and will continue until the end of the month.
Some 8 millions people on qualifying benefits - Universal Credit, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), Income Support, Pension Credit, Child Tax Credit or Working Tax Credit - will receive the cash boost. The qualifying period for these seven benefits was between April 26, 2022 and May 25, 2022.
However, in an update to the official cost of living guidance on the GOV.UK website, the DWP is warning people not to be duped by crooks who may try and trick them into applying for the £326 payment - something nobody needs to do because it is an automatic payment sent to those eligible.
The DWP guidance states: “You may be able to get a payment to help with the cost of living if you’re getting certain benefits or Tax Credits.
“You do not need to apply. You’ll be paid automatically.
“If you have had a message asking you to apply or contact someone about the payment, this might be a scam.”
If you do receive a text message asking you to apply for any of the cost of living payments, DWP advises that you forward it to 7726 - which is completely free to do and simply reports the message to your mobile phone provider.
DWP also added clarification about cost of living payments for joint claims.
It said: “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’re entitled.
“If you had a joint claim between 26 April and 25 May 2022, a single payment of £326 will be sent using the same payment method used between these dates, if you’re eligible.”
9 key points about £650 cost of living payment
Some handy information about the payment for £326 you should know.
- Not all 8 million payments will be made on Thursday, July 14 - payments will be staggered between July 14 and the end of the month due to the volume of people being paid.
- Payments will be made automatically into the account your qualifying benefit is usually paid - it will be a separate payment and will appear on your account/statement as ‘DWP Cost of Living’.
- You do not need to apply for any of the cost of living payments - DWP and HM Revenue and Customs (HMRC) are using a computer program to identify eligible claimants - if you do not receive a payment and think you should have, DWP advises you to “contact the office that pays your benefit or Tax Credits to discuss it”.
- Universal Credit claimants entitled to at least 1p during the qualifying assessment period will get the £326 payment.
- The second payment for £324 will follow in the autumn - the reason for two different payment amounts is to reduce the risk of fraud.
- People who receive a qualifying means-tested benefit from DWP and either Working Tax Credits or Child Tax Credits , will receive the payment for £326 from July 14. If you only receive Tax Credits, this will also be paid in two instalments starting in the autumn, with the second payment due in the winter - exact details have not been announced yet.
- Payments are per claim - so, one claim equals one £326 payment. A joint claim, equals one £326 payment - this is explained in more detail here.
- You will not be eligible for a payment if you get New Style Employment and Support Allowance, Contributions-based Employment and Support Allowance or New Style Jobseeker’s Allowance, unless you also get Universal Credit.
- Your payment may be backdated - for example if you applied for a qualifying benefit during the assessment period and it is later successful, you will receive the £326 in arrears. Older people can apply for Pension Credit up until August 24 and get the money backdated as it is a retrospective benefit which goes back a maximum of three months.
Am I eligible for a cost of living support payment?
Here is everything you need to know about the £326 cost of living payment - and all the other support coming this year - for people living in Scotland, England and Wales.
You could get up to three different types of payment depending on your circumstances on a particular date or during a particular 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
- £150Disability Cost of Living Payment - if you get a qualifying disability benefit
- £300 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 of at least 1p - 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 26, 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.
£150 if you get certain disability benefits
You may get a lump sum payment of £150 if you’re getting any of the following:
- 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
Eligibility
You must have received a payment (or later receive a payment) of one of these qualifying benefits for May 25, 2022 to get the payment.
If you get a qualifying disability benefit from the Ministry of Defence (MOD) and a qualifying disability benefit from DWP, you will get a Disability Cost of Living Payment from DWP only.
When you will get paid
Payments will be made from September 2022.
If you also get a qualifying low income benefit or Tax Credits, you may get an additional Cost of Living Payment.
£300 one-off payment for people of State Pension age
All eligible pensioner households will get the one-off ‘Pensioner Cost of Living Payment’ added as a top-up to their annual Winter Fuel Payment in November/December.
We have a full guide to all the different household combinations that qualify for the £300 payment here.
Eligibility
People will be eligible for this payment if they are over State Pension age (aged 66 or above) between 19-25 September 2022 and in receipt of the Winter Fuel Payment
The £300 is not taxable and will be paid on top of any other one-off support a pensioner household is entitled to, for example where they are on Pension Credit or receive disability benefits
The payment does not affect eligibility for other benefits
Who does not qualify for £300 payment?
There are certain circumstances where an individual above State Pension age does not qualify for the Winter Fuel Payment which can be found on GOV.UK, here
We have a full breakdown of all the Winter Fuel Payment scenarios here.
When you will get paid
Payments will be made over November and December.
£400 discount off energy bills
The UK Government will pay the £400 directly to energy suppliers who will deliver this support to households with a domestic electricity account over six months from October.
Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher - this will depend on whether they have a smart meter or not.
Who qualifies for the £400 energy bill grant:
- Domestic energy users in Scotland, England and Wales - equivalent support will be delivered to people in Northern Ireland
Other key points about the payment:
- The £400 does not need to be repaid
- This support is on top of the £150 Council Tax rebate for households in bands A-D (and with a reduction in Scotland), which was announced in February, and which millions of households have already received
You can read detailed examples of how the additional support packages will affect different types of households on he GOV.UK website here.
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