The Department for Work and Pensions (DWP) recently announced the planned payment schedule for the £900 means-tested cost of living support which will be delivered in 2023/24 for people on means-tested benefits, including those on Tax Credits.
The new £900 cash support is expected to help over eight million families on a low income and will be made in three instalments - two this year and one in 2024. The first payment for £301 will land in bank accounts automatically this Spring, the second for £300 in the Autumn and the final one for £299 in Spring, 2024.
People in receipt of 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. More details on payments are expected to be given nearer the time of the first payment.
DWP also 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.
There will also be a separate £150 Disability Cost of Living Payment this summer for more than six million people in receipt of disability benefits including Personal Independence Payment (PIP), Adult Disability Payment and Attendance Allowance.
Over eight million people of State Pension age will receive a £300 Pensioner Cost of Living Payment added to their annual Winter Fuel Payment.
DWP said exact payment windows will be announced closer to the time, adding that payments are being spread out to ensure consistent support throughout the year.
£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
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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