Many people are awaiting the date for when they will receive the first £301 cost of living payment for 2023.
The payment, which is expected some time in spring, will be the first part of the £900 means-tested cost of living support from the Government. The first round of support is expected to help around 8 million families, however, not everyone claiming means-tested benefits will automatically qualify for the payment.
The Daily Record reported that there is a possibility that Chancellor Jeremy Hunt may announce more details about the £37 billion cost of living financial package when he delivers his Spring Budget on Wednesday, March 15. But it’s worth bearing in mind that the Department for Work and Pensions (DWP) has said a couple of times now that the payment window for the £301 payment - and all other cost of living support - will not be announced until the last day of the qualifying period has passed.
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DWP Minister for Social Mobility, Youth and Progression, Mims Davies MP recently explained to MPs that this will help to “minimise work disincentives and fraud risks”. The key thing for anyone currently in receipt of Universal Credit or Pension Credit is that they must receive an award for at least one penny during the qualifying period - whenever that may be. No £301 payment will be given to claimants who have what’s referred to as a ‘nil award’.
There are also other benefits, especially contributions-based ones, which will not be eligible for any of the £900 payment. The guidance on eligibility for the 2022/23 cost of living payments is expected to be the same for 2023/24 and states: “You will not get a payment if you were getting New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker’s Allowance, unless you were getting Universal Credit as well.”
For the estimated 800,000 older people eligible for Pension Credit and not claiming, now is the time to check if you qualify. The benefit helps those on State Pension with a low income - roughly under £200 per week for single pensioners and £300 for couples.
It is a retrospective benefit, which means claims can be backdated by up to three months - a new claim submitted over the next few weeks could qualify for the £301 payment.
The DWP is continuing this year with a Pension Credit awareness campaign it launched in April 2022 which has seen a 77% increase in claims for the benefit worth on average £3,500 each year. People can check their eligibility for Pension Credit using the online calculator on GOV.UK here or by calling the Pension Credit helpline on 0800 99 1234.
Universal Credit ‘nil awards’
You will not be eligible for the cost of living payment if your Universal Credit is reduced to £0 for the qualifying assessment period - often referred to as a ‘nil award’. Reasons your Universal Credit may be reduced to £0 for an assessment period include getting more than one payment of earnings, you or your partner’s earnings go up, you or your partner’s savings go up, you start getting another benefit.
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. DWP previously explained that the £900 payment will be made up of three slightly different amounts (£301, £300, £299), relating to specific qualifying periods, making it simpler to determine if someone has received the correct payments.
But it also means that working Universal Credit claimants may be able to qualify for one or more of the payments, especially if they do not always get a ‘nil award’. Below is a quick overview about all the cost of living payments - worth £1,350 in total - due over 2023/24. More details will be added as eligibility guidance is updated, which you can also find on GOV.UK here.
Cost of living payment schedule 2023/24
People who are eligible for any of the cost of living payments and receive Tax Credits, and no other means-tested benefits, will receive their payment from HM Revenue and Customs (HMRC) shortly after DWP payments have been issued. Exact payment windows will be announced closer to the time they are due to be made, along with qualifying dates.
£900 means-tested cost of living payment
- £301 - first payment to be made during Spring 2023
- £300 – second payment to be made during Autumn 2023
- £299 - third payment to be made during Spring 2024
This will be paid to eligible households receiving the following benefits:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credit - paid by HMRC if no other DWP means-tested benefit is also claimed
- Child Tax Credit - paid by HMRC if no other DWP means-tested benefit is also claimed
This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
£150 disability cost of living payment
- £150 - this one-off payment will be made during Summer 2023
This will be paid to eligible claimants receiving the following benefits:
- Disability Living Allowance
- Personal Independence Payment
- Adult Disability Payment
- Child Disability Payment
- Attendance Allowance
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
This payment will be tax-free and will not have any impact on existing benefit awards.
£300 Pensioner Payment
- £300 - this will be added to annual Winter Fuel Payments during Winter 2023/24
Older people also in receipt of Pension Credit will also qualify for the £900 means-tested cost of living payment and the £150 payment if they are receiving support through one of the listed disability benefits. In total, pensioner households could get an income boost of £1,350 during 2023/24.
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