A warning has been issued by the Department for Work and Pensions (DWP) ahead of the scheduled payment of the first cost of living payment next week. The tax-free payment, which is worth £301, is set to be rolled out from next Tuesday (April 25).
The cash will be given automatically to millions who receive benefits such as Universal Credit and Tax Credits. However, being eligible for these means-tested benefits will not be enough to receive the money.
As reported by Manchester Evening News, you will be excluded from this round of payments if your benefit was reduced to £0 during the qualifying period between January 26 and February 25, 2023. This is because you may have got a 'sanction' for not doing something you agreed on with your claimant commitment.
READ MORE: DWP confirms PIP to stay non means-tested after becoming only health assessment for benefits
This is also sometimes known as a 'nil award'. Some people may not be eligible for the cost of living payment for the following reasons:
- You got more than one payment of earnings in your Universal Credit assessment period
- Your or your partner’s earnings went up
- Your or your partner’s savings went up
- You started getting another benefit
- You got a ‘sanction’ because you did not do something you agreed in your claimant commitment
However, you may still be eligible if the sanction caused you to have a 'hardship payment'. Likewise, you could be considered eligible if the money was taken from your benefit for reasons such as payment for rent to your landlord or money that you owe.
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