The Department for Work and Pensions (DWP) recently announced that more than six million people claiming disability benefits will receive a one-off £150 cost of living payment between Tuesday, June 20 and Tuesday, July 4. Payments will be made automatically, which means nobody needs to apply for the extra financial support.
However, in an update on the official cost of living payments 2023/24 page on GOV.UK, DWP warns that “if you receive a Disability Cost of Living Payment, but we later find that you were not eligible for it, you may have to pay it back”.
This advisory may be due to statistics published in the new ‘Fraud and Error in the benefits system’ report which estimates that £410 million (4.9%) in cost of living payments (across all benefits) were overpaid during the 2022/23 financial year. The total UK Government expenditure on cost of living payments last year was £8.4 billion.
The report estimates that overpayments due to fraud accounted for £310 million (3.7%) while overpayments due to claimant error and official error were estimated at £60 million (0.8%) and £40 million (0.5%) respectively.
Overpayments relating to incorrectly paid low-income benefits accounted for around £9 in every £10 overpaid on cost of living payments, some £380 million. This was mostly due to £330 million of cost of living payments being overpaid to people incorrectly receiving Universal Credit.
£150 disability cost of living payment eligibility
To be eligible for the £150 payment, you must be in receipt of one of the benefits listed below:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
Qualifying period
To be eligible for the automatic lump sum, claimants must have received a payment (or later found to be eligible) on April 1, 2023.
For those people awaiting confirmation of their entitlement to disability benefits on April 1, or who are waiting to be assessed for eligibility to receive disability benefits, the payment process may take longer and arrive after the scheduled window closes on July 4, but the money will still arrive automatically.
Payment window
The money will be paid automatically into the same account for your qualifying benefit, but will appear as a separate payment. This will arrive between June 20 and July 4, 2023.
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