May will see household incomes impacted by DWP changes and payments including the first of three cost-of-living packages due this year. The annual benefits increase will be felt by many for the first time in May, while three Bank Holidays in the month means changes to the dates people get their money.
As reported in the Birmingham Mail, here is a rundown of the changes and key dates you need to know about...
£301 cost of living payments
The payment of £301 is the first of three to be made to millions of people across the UK this year. The money will appear in the bank accounts of people who claim certain benefits, including Universal Credit, Jobseekers Allowance, Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Pension credit.
The payment will show in your account as DWP COLP with your National Insurance number. The next two payments will come in autumn and then towards the start of 2024.
Eight million homes are eligible for the cash. The £301 will be paid between April 25 and Mat 17 for most people on DWP benefits. If you’re getting both Child Tax Credit and Working Tax Credit, you will receive a Cost of Living Payment for Child Tax Credit only, which will be paid by HMRC.
If you’re getting tax credits from HMRC and a low income benefit from DWP, you cannot get a Cost of Living Payment from both HMRC and DWP. You will usually be paid by DWP only. Your payment might come later, for example if you’re awarded a qualifying benefit at a later date or you change the account your benefit or tax credits are paid into. You will still be paid the Cost of Living Payment automatically.
Eligibility
Universal Credit
You are eligible for the first Cost of Living Payment of £301 if you were 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 26 January 2023 to 25 February 2023
Income-based JSA, income-based ESA, Income Support and Pension Credit
You are eligible for the first Cost of Living Payment of £301 if you were 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 26 January 2023 to 25 February 2023.
You are also eligible if you are entitled to one of these benefits for any day during this period but you do not receive a benefit payment because your entitlement is between 1 penny and 9 pence.
Tax credits
You are eligible for the first Cost of Living Payment of £301 if you received a payment of tax credits for any day in the period 26 January 2023 to 25 February 2023, or you are later found to have been entitled to a payment for this period.
Pension credit deadline
Pensioners can carry out a simple check to see if youcan get later access to the £301 cost of living payment. Around 850,000 older people are missing out on Pension Credit, an income top-up benefit that is eligible for three cost of living payments including the £301 that's due between April 25 and May 17.
In most cases, you must have been on one of the qualifying benefits between January 26 and February 25. But there is still a way for older people to be entitled to the cost of living support if they put in a later claim for Pension Credit before May 19. Even if you miss out on that particular claims deadline, if you apply after that you could still get the two other cost of living amounts coming later in the financial year, the Government said.
Bank Holidays
Due to the Coronation, there are three Bank Holidays in May this year:
- Early May Bank Holiday on May 1
- Coronation Bank Holiday on May 8
- Spring Bank Holiday on May 29
All fall on a Monday which means your regular benefit payments will be moved three times. Anyone set to receive a payment on any of those days and dates should instead get it on the preceding Friday. S
The list of benefits affected by the Bank Holiday payment date changes include:
- Attendance Allowance
- Carer's Allowance
- Child Benefit
- Disability Living Allowance
- Employment and Support Allowance
- Income Support
- Jobseeker's Allowance
- Pension Credit
- Personal Independence Payment
- State Pension
- Universal Credit
- Tax credits (such as Working Tax Credit)
Rises in benefits
Although the new rates came into effect on April 10, most people won't see them in their payments until either May or June because benefits are paid in arrears. That means people need a full payment cycle after April 10 to feel the effect of the rise.
For Universal Credit, this is a four-week assessment period that must start on or after April 10. It means anyone paid their Universal Credit up till May 16 will still receive their money at the old rate. After that, for the rest of May and into June and beyond, they'll be paid at the new rate.
The same applies to other monthly payments such as Personal Independence Payment, State Pension, Disability Living Allowance, Child Benefit and Attendance Allowance.
