Millions will receive the new cost of living support from spring 2023.
A £900 Cost of Living Payment for means-tested benefit claimants will go directly to bank accounts in three payments over the financial year Further cash support for disabled people and pensioners will see some households receive extra cash.
The new £900 cash boost for over eight million eligible means-tested benefits claimants includes those on Universal Credit, Pension Credit and tax credits.
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However, not everyone on Universal Credit will receive the first payment of £301, according to the Daily Record. DWP guidance explains that claimants will not be eligible for any cost of living payment if their Universal Credit is reduced to £0 for the qualifying assessment period - often referred to as a ‘nil award’.
It’s important to note that no qualifying period dates have been announced yet for any of the cost of living payments, but it’s worth keeping an eye on your Universal Credit payments to make sure that you’re getting at least one penny, as that’s all you will need to be eligible for the £301.
DWP has previously explained that while a claimant with a nil award may not qualify for one payment, they may do so for the next - as long as their Universal Credit payment is 1p or more.
Reasons your Universal Credit may be reduced to £0 for an assessment period include getting more than one payment of earnings, you or your partner’s earnings go up, you or your partner’s savings go up, you start getting another benefit.
If money has also 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.
Almost 551,000 Universal Credit claimants missed out on the first cost of living payment for £326 last summer due to a nil award.
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