New £301 cost of living payment rules could see more…

New £301 cost of living payment rules could see more people due cash help this Spring

The Department for Work and Pensions (DWP) recently announced that more than eight million families will receive the £301 cost of living payment between April 25 and May 17, 2023. It is the first part of the £900 means-tested cost of living cash from the UK Government’s 2023/24 financial support package, which is worth £37billion in total.

Payments of £301 will land automatically into eligible claimants’ bank accounts during the payment window, so there’s no need to make a claim. To be eligible for the lump sum payment, you need to have been awarded a payment of at least one penny for the Universal Credit assessment period ending between January 26, 2023 to February 25, 2023

For all other DWP means-tested benefits, such as Income-based Jobseeker’s Allowance (JSA), income-based Employment and Support Allowance (ESA), Income Support and Pension Credit, you must have received a payment on any day between January 26 and February 25, 2023.

Regarding these benefits specifically, guidance from DWP states: “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.”

For Tax-Credit-only customers, you must have received a payment on any day in the qualifying period of January 25, 2023 to February 25, 2023, or later be found to have been entitled to a payment for this period.

Those who are eligible for the £301 cost of living payment solely through Tax Credits, and are not eligible through DWP means-tested benefits, will be paid by HM Revenue and Customs (HMRC) shortly after DWP payments begin on April 25.

HMRC will publish specific details of when payments will be made to these claimants along with the bank account payment reference.

Universal Credit ‘nil awards’

You will not be eligible for the £301 cost of living payment if your Universal Credit is reduced to £0 for the qualifying assessment period - often referred to as a ‘nil award’.

Reasons your Universal Credit may be reduced to £0 for an assessment period include getting more than one payment of earnings, your or your partner’s earnings go up, your or your partner’s savings go up, you start getting another benefit.

However, if money has been taken off for other reasons such as payments of rent to your landlord or for money that you owe, you might still be eligible.

Qualifying benefits for £301 payment

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.

Benefits that do not qualify for £301 payment

You will not get a payment if you are only getting:

New Style ESA
Contributory ESA
New Style JSA

Joint claims

If you have a joint claim on the qualifying dates, a single payment of £301 will be sent using the same payment method, if you’re eligible.

New Pension Credit claims and £301 payment

The DWP is also encouraging low-income pensioners not already getting Pension Credit to check their eligibility, as they can still qualify for the £301 cost of living payment if they make a successful Pension Credit application by May 19, 2023.

This is because Pension Credit is a retrospective benefit that can be backdated by up to three months, taking it to within the qualifying period.

People can check their eligibility for Pension Credit using the online calculator on GOV.UK here or by calling the Pension Credit helpline on 0800 99 1234.

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