The Department for Work and Pensions (DWP) announced earlier this week that people on certain benefits will see the first part of the £650 Cost of Living Payments land in bank accounts from July 14, with all eligible claimants to have received £326 by the end of the month.
However, many people are still confused about when they will be paid and by which department if they receive Working Tax Credits or Child Tax Credits either on their own or along with a qualifying DWP benefit.
HM Revenue and Customs (HMRC) has now released a pre-recorded message on the Tax Credits phone helpline which states that anyone who receives Tax Credits AND a qualifying DWP benefit will receive the £326 payment from the DWP from July 14. Claimants who only receive a Tax Credits payment will get their first payment in the autumn and the second in the winter.
The audio message states: “The Cost of Living Payment is being made in two instalments for people who claim Tax Credits.
“If you also receive an income-related benefit from the Department for Work and Pensions, you will get your first instalment from July 14.
“If you receive Tax Credits only, you will get your first instalment from the autumn.
“You do not have to do anything in order to get the payment, if you are eligible, payments will be made automatically.”
The Cost of Living Payment guidance on GOV.UK has also been updated to reflect the new information and provide clarity on the payments and eligibility criteria.
Below is everything you need to know if you’re currently in means-tested benefits and/or Tax Credits.
Low income benefits
You may get a payment of £650 paid in two lump sums of £326 and £324 if you’re getting any of the following:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
Eligibility
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 either:
Universal Credit for an assessment period that ended in the period April 26, 2022 to May 25, 2022
Income-based JSA, Income-related ESA, Income Support or Pension Credit for any day in the period April 26, 2022 to May 25, 2022
The DWP said it will update the guidance when the Uk Government has announced the qualifying dates to get the second payment of £324.
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.
You will not 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.
When you will be paid
DWP said: “Most of the first payments of £326 will be made between July 14, 2022 and the end of July 2022. We will update this guidance when payments have been made.
“You’ll get the second payment of £324 in autumn 2022, if you’re entitled.”
Tax Credits
You may get a payment of £650 paid in two lump sums of £326 and £324 if you have an award of any of the following:
- Child Tax Credit
- Working Tax Credit
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.
Eligibility
To get the first Cost of Living Payment of £326, you must have received a payment, or an annual award of at least £26, of Tax Credits on any day in the period April 26, 2022 to May 25, 2022.
The guidance will be updated when the UK Government has announced the qualifying dates to get the second payment of £324.
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.
If you get both Child Tax Credit and Working Tax Credit, you will receive a Cost of Living Payment for Child Tax Credit only.
When you will be paid
If you only receive Tax Credits, you will get the first payment of £326 from autumn 2022 and the second payment of £324 from winter 2022, if you’re entitled.
If you also get a qualifying disability benefit, you may get an additional Disability Cost of Living Payment from DWP.
Disability benefits
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
- Child Disability Payment
- 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 will get paid
Payments will be made from September 2022.
If you also get a qualifying low income benefit or Tax Credits, you may get an additional Cost of Living Payment.
You can read the updated Cost of Living Payment guidance on GOV.UK, here.
To keep up to date with the cost of living crisis, join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.
