Around 1.1million people across England, Wales and Scotland will start seeing a £326 Cost of Living Payment from the Government land in their bank accounts from today. Friday marks the start of the payment period for those in receipt of tax credits.
It is part of extra help announced by the Government earlier this year to help people deal with the cost of living crisis. Those in receipt of certain benefits are also eligible, receiving £650 in two parts, one of which has already been issued, with the second £324 to come in the autumn.
Today, however, those getting tax credits will start receiving a £326 boost. There are three different types of payment available, according to the Department for Work and Pensions (DWP):
- a Cost of Living Payment, if you get a qualifying low income benefit or tax credits
- a Disability Cost of Living Payment, if you get a qualifying disability benefit
- a Pensioner Cost of Living Payment, if you’re entitled to a Winter Fuel Payment for winter 2022 to 2023
These payments are not taxable and will not affect the benefits or tax credits you get.
Low income benefits and tax credits
You may get 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
The DWP says you won't get 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. 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.
Universal Credit
To get the first Cost of Living Payment of £326, the DWP says you must have been entitled to a payment (or later found to be entitled to a payment) of Universal Credit for an assessment period that ended in the period between April 26, 2022, and May 25, 2022. The qualifying dates for the second payment of £324 are yet to be announced. The payment will be made separately from your benefit.
However, those whose earnings reduced their Universal Credit to £0 - known as 'nil awards' - during the qualifying period will not be eligible for the Cost of Living Payment. 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 might 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.
Again, qualifying dates for the second payment of £324 have yet to be announced. The payment will be made separately from your benefit.
Tax credits
As mentioned, those in receipt of tax credits will start seeing their first payment of £326 from today. To qualify, you must have been entitled, or later found to be entitled, for any day in the period April 26, 2022, to May 25, 2022 to:
- a payment of tax credits
- an annual award of at least £26 of tax credits
As with other benefits, the qualifying dates to get the second payment of £324 have not yet been announced. 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.
When you’ll be paid
| Benefit or tax credits | Cost of Living Payment | When you’ll be paid |
|---|---|---|
| Universal Credit | £326 | Between July 14 and 31 for most people |
| |
£324 | Autumn 2022 |
| Income-based JSA | £326 | Between July 14 and 31 for most people |
| |
£324 | Autumn 2022 |
| Income-related ESA | £326 | Between July 14 and 31 for most people |
| |
£324 | Autumn 2022 |
| Income Support | £326 | Between July 14 and 31 for most people |
| |
£324 | Autumn 2022 |
| Pension Credit | £326 | Between July 14 and 31 for most people |
| |
£324 | Autumn 2022 |
| Tax Credits | £326 | Between September 2 and 7 for most people |
| |
£324 | From winter 2022 |
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. Your payment might 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.
The DWP says you will still be paid the Cost of Living Payment automatically and do not need to contact DWP or HMRC. Anyone found to have received a payment they were not entitled to may be asked to pay it back.
Report a missing Cost of Living Payment
If you think you should have had the £326 payment, but you cannot see it in your bank, building society or credit union account, you can report a missing Cost of Living Payment.
Most people getting tax credits will be paid the first Cost of Living Payment of £326 between September 2 and 7, 2022. Those people can report a missing payment to HMRC from September 16, to allow time for your bank, building society or credit union to process the payment.
Disability Cost of Living Payment
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 (in Scotland)
- Child Disability Payment (in Scotland)
- 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’ll get paid
You’ll be paid the £150 Disability Cost of Living Payment automatically from September 20, 2022. Most people will receive their payment by the beginning of October 2022. Payments will be made to people who get a qualifying disability from DWP before payments to people who get a qualifying benefit from the Ministry of Defence.
Pensioner Cost of Living Payment
If you’re entitled to a Winter Fuel Payment for winter 2022 to 2023, you will get an extra £300 for your household paid with your normal payment from November 2022. This is in addition to any Cost of Living Payment you get with your benefit or tax credits.
The full amount of Winter Fuel Payment you will get for winter 2022 to 2023 depends on your circumstances. These amounts are for winter 2022 to 2023 only.
| Your circumstances | Born between 26 September 1942 and 25 September 1956 | Born on or before 25 September 1942 |
|---|---|---|
| You qualify and live alone (or none of the people you live with qualify) | £500 | £600 |
| You qualify and live with someone under 80 who also qualifies | £250 | £350 |
| You qualify and live with someone 80 or over who also qualifies | £250 | £300 |
| You qualify and live with a partner who qualifies, and either of you gets certain benefits | £500 - only one of you will get the payment | £600 - only one of you will get the payment |
| You qualify and live with someone (not your partner) who qualifies, and either of you gets certain benefits | £500 - you’ll both get the payment | £600 - you’ll both get the payment |
| You qualify, live in a care home and do not get certain benefits | £250 | £300 |
