The Department for Work and Pensions (DWP) recently announced that the £301 cost of living payment will land in more than eight million bank accounts between April 25 and May 17, 2023. However, it is important for people on DWP benefits to be aware that not everyone will qualify for the first part of the £900 means-tested cost of living financial support.
People currently claiming New Style Employment and Support Allowance (ESA), Contributions-based ESA and New Style Jobseeker’s Allowance (JSA) will not be eligible for any of the £301, £300 or £299 payments because these are not income-related benefits.
Similarly, people on Universal Credit need to have been awarded a payment of at least one penny for the assessment period ending on any day between January 26, 2023 to February 25, 2023. 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, you or your partner’s earnings go up, you 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.
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 on GOV.UK 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.”
Tax Credits £301 payment
Those who are eligible for the £301 cost of living payment solely through Tax Credits, and are not in receipt of any other DWP means-tested benefits, will be paid by HM Revenue and Customs (HMRC) between May 2 and May 9, 2023.
For Tax-Credit-only customers, you must have received a payment on any day in the qualifying period of January 26, 2023 to February 25, 2023, or later be found to have been entitled to a payment for this period.
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.
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