The UK Government is set to spend a further £37 billion on additional cash support over the next financial year through five cost of living payments. More than eight million people on means-tested benefits, including Universal Credit and Pension Credit, are due to receive the first payment of £301 in the Spring.
The Spring equinox on Monday, March 20 marks the official start of astronomical springtime, but most predictions suggest that payments will not begin until sometime after the new financial year starts on April 6. New guidance on GOv.UK dedicated to the 2023/24 cost of living payments, also offers an update on when the exact payment window can be expected.
It also indicates that some cost of living payments due to be made during the seasonal payment window, may arrive later for some people. It states: “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.”
But even if you don’t receive the money during the payment window period, it will still be made automatically, so there’s no need to apply.
It is possible that much like last year, people will be able to report a missing payment, but there is no mention of that in the new guidance.
Qualifying periods will be announced once the payment window has been confirmed.
Cost of living payment schedule
Five payments are due to be made over the new financial year:
- £301: First means-tested payment due this Spring
- £150: Disability payment due this summer
- £300: Second means-tested payment due this Autumn
- £300: Pensioner payment will be added to 2023/24 Winter Fuel Payment
- £299: Third means-tested payment due Spring 2024
There are several benefits that could make claimants eligible for the £301 Cost of Living Payment, including Universal Credit and Tax Credits - through which 5.4 million households across the UK are expected to qualify, and Pension Credit, through which 1.4 million pensioner households are expected to be paid.
Some 1.3 million claimants will be eligible through legacy benefits from the Department for Work and Pensions (DWP) such as Jobseekers Allowance and Income Support, reaching a total of 8.1 million households.
Eligible individuals do not need to apply for payments, as they are made automatically and those eligible for cost of living payments through Tax Credits, and no other means-tested benefits, will be paid by HM Revenue and Customs (HMRC) shortly after DWP payments are made.
Below is a guide to qualifying benefits for each of the cost of living payments.
£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.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, o r subscribe to our newsletter which goes out Monday to Friday - sign up here.
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