More than seven million households will have received the £301 cost of living payment directly from the Department for Work and Pensions (DWP) by the end of today (Wednesday). This represents 99 per cent of those on eligible means-tested benefits due to receive the financial support from DWP.
A further one million people on Tax Credits-only, will receive the first part of the £900 cost of living support directly from HM Revenue and Customs (HMRC) during the separate payment window between May 2-9. However, DWP has said that while the ‘vast majority’ of people will have received the lump sum by May 3, a ‘small number’ of outstanding payments will continue to be made between now and May 17, 2023.
Anyone eligible still waiting for the money does not need to contact DWP before that date as payments are being made automatically. However, after May 17, if someone thinks they may be missing a payment they are entitled to, they can fill out a form on the GOV.UK website - more details on this when the claim form goes live.
The payment is the first of three cost of living payments being made this year and in early 2024 as part of the UK Government’s commitment to supporting vulnerable families with financial pressures.
This comes alongside work to deliver on the government’s five priorities, including halving inflation and growing the economy, which will ultimately help put more money in people’s bank accounts at the end of the month.
Mel Stride, Secretary of State for Work and Pensions, said: “Paying more than seven million households £301 in a little over a week underlines our commitment to ensure those on the lowest income are protected from the worst of rising prices and give them peace of mind.
“With further payments due to be made later this year and in 2024, we will continue to provide support to those who need it most while we tackle inflation and grow the economy.”
Jeremy Hunt, Chancellor of the Exchequer, added: “We know the impact that rising prices are having on families, which is why we are providing significant support to millions through these direct cash payments. This is alongside other support, including holding down energy bills, uplifting benefits and the state pension by 10 per cent, and increasing the National Living Wage by a record amount.
“The single best way to ease cost of living pressures is to bear down on inflation. We are on track to halve it this year, laying the foundation for the long-term growth needed to improve everyone’s living standards.”
The Cost of Living Payments, spread across 2023/24, are worth up to £900 for those on means-tested benefits. The next payment for those on means-tested benefits is due in the Autumn, with the third instalment due next Spring.
These are accompanied by a £150 payment for people on eligible disability benefits this summer, and a £300 payment to top up Winter Fuel Payments for pensioners at the end of 2023 - meaning some will receive up to £1,350.
This makes up part of the UK Government’s significant cost of living support - now worth an average of £3,300 per household over this year and 2022.
£301 cost of living payment eligibility
People will be eligible for the £301 cost of living payment if they have been entitled to a payment for one of seven benefits between January 26 and February 25, 2023.
The eligible benefits are:
- Universal Credit
- Pension Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
The DWP encourages anyone who thinks they may be eligible for a qualifying benefit to use a GOV.UK benefits calculator to check their entitlement.
New Pension Credit claims and £301 cost of living payment
The DWP is also encouraging low-income pensioners not already getting Pension Credit to check their eligibility, as they can still qualify for the £301 cost of living payment if they make an application for Pension Credit application before May 19, 2023 which later turns out to be successful.
This is because Pension Credit is a retrospective benefit that can be backdated by up to three months, taking it to within the qualifying period (January 26 - February 25).
If you are over 65 and reached State Pension age before April 6, 2016, you could still qualify for Pension Credit if your weekly income is less than:
- £218.80 if you are single
- £319.20 if you are a couple
People can check their eligibility for Pension Credit using the online calculator here or by calling the Pension Credit helpline on 0800 99 1234.
All cost of living payments from DWP and HMRC will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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