Earlier this week, the UK Government launched a dedicated ‘Cost of Living Payments 2023 to 2024’ page on its official website. The new microsite is similar in detail to last year’s support page which was regularly updated with qualifying periods and payment windows for all cost of living payments.
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 a payment of £301 from the Department for Work and Pensions (DWP) in the Spring.
After the first part of the £900 cost of living payment has been made, the next one on the timetable will see more than six million people claiming disability benefits receive a one-off lump sum worth £150. However, the new guidance warns everyone due any cost of living payment to be aware of scammers.
The guidance on GOV.UK reminds anyone due a payment: “You do not need to apply. If you’re eligible, you’ll be paid automatically in the same way you usually get your benefit or tax credits. This includes if you’re found to be eligible at a later date.”
It also warns: “If you have had a message asking you to apply or contact someone about the payment, this might be a scam. ”
Cost of living payment schedule
- £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 DWP benefits such as Jobseekers Allowance and Income Support, reaching a total of 8.1 million households.
People 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.
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