The Department of Work and Pensions (DWP) have confirmed dates for when the next cost of living payments will hit banks.
A planned payment schedule for the £900 means-tested cost of living support was recently announced. The £900 payment is expected to be handed out to more than eight million people on low income and will be made in three separate instalments.
The payment plan set out how the support would be delivered in 2023/24 for people on means-tested benefits. However, those on Working Tax Credits or Child Tax Credits only, and no other DWP means-tested benefit will receive the payments from HM Revenue and Customs (HMRC) shortly after DWP payments are issued, reported the Daily Record.
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For other benefit claimants the first payment of £301 is expected to hit bank accounts automatically in the Spring, with a second payment of £300 in Autumn and the third payment of £299 being made in the Spring of 2024.
Further details on the payments are expected to be given nearer the time. The DWP also said that the £900 payment will be made up of three varying amounts (£301, £300, £299), relating to specific qualifying periods, making it simpler to determine if someone has received the correct payments.
In the summer, more than six million people in receipt of disability benefits including Personal Independence Payment (PIP), Adult Disability Payment and Attendance Allowance will receive a separate £150 Disability Cost of Living Payment.
Over eight million people of State Pension age will receive a £300 Pensioner Cost of Living Payment added to their annual Winter Fuel Payment. The exact dates that the money will be paid will be announced closer to the time, the DWP said. They added that payments are being spread out to given continued support to those who need it throughout the year.
£900 means-tested cost of living payment
How much will be paid and when
- £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
Qualifying benefits
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.
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