Millions of people are to receive cost of living payments from next month - here are the rules for those expecting to receive the cash.
The Department for Work and Pensions (DWP) has said that £301 will land in people's accounts between April 25 and May 17. Two further instalments of £300 and £299 will follow, the first in the autumn and the second in spring 2024. Dates for those amounts have not yet been publicised.
There will also be a new £150 for people on disability benefits, to be paid in summer 2023, and another £300 top-up on the Winter Fuel Payment, reports BirminghamLive. The DWP says some people will qualify for all of the payments, potentially getting an extra £1,350 over the coming year.
Read More: Scam warning for thousands in North East as DWP reveals first cost of living payment dates
But there are rules and criteria to be aware of. Here is a round-up of those rules.
Cost of living payment rules
Here are the key rules for the first new cost of living payment so you can check if you qualify.
1. Eligible benefits
Only those in receipt of certain means-tested benefits are in line to get the £301. These benefits are: Universal Credit, Income-based Jobseeker's Allowance (JSA), Income-related Employment and Support Allowance (ESA), Income Support, Working Tax Credit, Child Tax Credit, and Pension Credit.
Other types of ESA or JSA don't qualify. So you will not receive the payment if you are New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker's Allowance.
2. Qualifying period
Those to receive the first sum of £301 must have been eligible during a qualifying period of January 25 to February 26. What this means for those on Universal Credit is that they must have been entitled to a payment (or later found to be entitled to a payment) for an assessment period that ends somewhere within those dates.
People on income-based JSA, income-related ESA, Income Support or Pension Credit must have been entitled to a payment (or later found to be entitled to a payment) of one of those benefits within that same period. The same rules applies to people on Working Tax Credit or Child Tax Credit.
3. No need to put in a claim
The Government has made it clear that people do not need to apply. If you are found to be eligible, you will be paid automatically in the same way you usually get your benefit or tax credits. This includes if you are only found to be eligible at a later date.
So the money will simply appear in the same account where your benefits are paid, though it will appear as a separate amount. If you have had a message asking you to apply or contact someone about the payment, this is likely to be a scam.
4. Nil award could stop payment
The rules say you will not be eligible for the cost of living payment if your benefit is reduced to £0 for the qualifying period. This is sometimes called a 'nil award.'
For those on Universal Credit, a monthly benefit payment can be reduced to zero if someone gets two sets of wages in one assessment period, or if their earnings or their partner's earnings go up. Similarly, if your savings suddenly go up for any reason, or you start getting another benefit, it can cut your Universal Credit completely. In all these cases where a person ends up with zero Universal Credit from an assessment in the qualifying dates, they won't be entitled to the cost of living payment.
However, if money has been taken off for other reasons (such as payments of rent to your landlord or for money that you owe), you might still be eligible.
5. Backdated claim
While most people need to have had a benefit payment within the qualifying dates at that time, there is a way to get a cost of living payment with a later application for benefits. This applies only to Pension Credit, an income top-up for people of State Pension age.
It means older people could be entitled to the cost of living support if they put in a claim for Pension Credit before May 19. The DWP explained that as this benefit can be backdated for three months, it would then cover the earlier qualifying period for the cost of living cash.
6. Tax credits
If you receive tax credits, which are paid out by HMRC, but are not on any DWP low-income benefits, the cost of living payment will come from HMRC "shortly after DWP payments begin", the Government said.
If you are getting both Child Tax Credit and Working Tax Credit, you will receive just one cost of living payment for your Child Tax Credit account. And if you're getting tax credits from HMRC as well as a low-income benefit from DWP, you won't get cost of living payments from both Government bodies. You will usually be paid by DWP only.
7. Later payments
Your payment might come later if, for example, you are awarded a qualifying benefit at a later date or you change the account your benefits or tax credits are paid into. You will still be paid the cost of living payment automatically.
But it's important to make sure the DWP or HMRC has your updated account details, or payments could be sent to your old account and then bounce back, causing a delay in getting the money.
8. Found to be not eligible
If you have received a cost of living payment, but the Government later finds that you were actually not eligible for it, you may have to pay it back.
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Read Next:
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