It is understood that starting from Tuesday, April 25, the Department for Work and Pensions (DWP) will begin its roll out of the first of this year's cost of living payments, worth £301. Millions of Brits are in line for the additional payout, however, the DWP has issued a warning for those who may be expecting the round of cash to land next week.
The tax-free payment will be paid automatically to those who receive means-tested benefits such as Universal Credit and Tax Credits. However, according to Manchester Evening News, the DWP has now clarified that simply being eligible for means-tested benefits is not enough to receive the payment.
According to the government department, you will be excluded from this first round of payments if your benefit was reduced to £0 during the qualifying period between Thursday, January 26, 2023 and Saturday, February 25, 2023.
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The key reason for this exclusion is if your payment was reduced due to a 'sanction'. A sanction is due to not doing something you agreed on with your claimant commitment. This is also sometimes known as a 'nil award' which can be applied to your benefit for other reasons that won't make you eligible for the cost of living payment, including the following:
- 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
Despite this, you may still be considered eligible if you had a 'hardship payment' because of the sanction. Furthermore, you could also still be eligible if the money was taken off your benefit for other reasons such as payment for rent to your landlord or money that you owe.
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