The Department for Work and Pensions (DWP) recently confirmed that over 8 million families across the country receiving means-tested benefits will automatically get a cost of living payment of £301 this Spring. It also announced that over 6.5 million people on disability benefits will receive a £150 payment this Summer.
More than 686,000 households in Scotland will be eligible for the £301 means-tested payment and 639,000 people on qualifying disability benefits are set to receive the £150 lump sum. Earlier this week, MPs approved the Social Security (Additional Payments) (No.2) Bill at second reading and it will now undergo further scrutiny at a later date.
The Bill outlines the details of the £900 cost of living payment which is being made in three instalments over the next financial year and the £150 disability payment, but not the £300 pensioner cost of living payment as that will be added to the Winter Fuel Payments for 2023/24.
It also confirms that the cost of living payments will have the “same set of qualifying benefits as previously” and, as before, some households will qualify for more than one type of payment.
It adds that most payments will be made automatically, without the need to make a claim and all payments will again be tax-free, will not count towards the benefit cap, and will have no impact on existing benefit awards.
But for those waiting on the all-important qualifying period dates, which will determine whether someone is eligible for any of the £900 means-tested payments - £301, £300, £299 - or the £150 disability payment, these have still not been released.
However, DWP has given a good reason why “precise qualifying and payment dates for means-tested and disability support have yet to be announced”.
In a nutshell, it’s to “limit the possibility of fraud”.
DWP will only announce the qualifying periods once they have passed so that criminals cannot try to dupe the system and take advantage of the much-needed cost of living support.
Work and Pensions Secretary Mel Stride told MPs: “We still recognise that despite the relief that (reducing inflation) will provide to millions up and down the country, we still need to provide further support payments.”
The legislation, he added, will set out the “basis of qualification for the payments”, who makes the payments plus timing of them.”
Cost of living payments 2023/24
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.
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