The Department for Work and Pensions (DWP) will start to make the first of two payments which make up the £650 means-tested Cost of Living Payment financial support package from July 14. Eligible claimants who are in receipt of certain benefits will be paid £326 by the end of this month.
More than 8 million households will receive a payment, however, many new members of the Daily Record Money Saving Scotland Facebook group are still unsure which payments they qualify for and how much they will receive. This is mainly down to unpaid carers not receiving any one-off support because the DWP has said a few times since the announcement in May that most carers live in a household where someone qualifies for the £650 payment or £150 Disability Cost of Living Payment and will benefit indirectly.
It is also worth remembering that every household with an electricity account will receive a £400 grant in October which will be sent directly to their supplier, where it will be deducted from their bill over six months. Households on prepaymenter supply will also receive this through vouchers or directly to their Smart meter.
To help everyone understand who will get what and when, below is our bumper guide to the support available.
We have excluded the financial support available from local councils as this will be local authority specific. The best way to find out what support your local council can offer you is to contact them directly.
What’s the maximum someone could get this year?
This question has been asked a lot, but it really depends on your circumstances.
For example, if you are under State Pension age and on Universal Credit, but also claim Personal Independence Payment (PIP), you could be due £800 - £650 for means-tested payment and £150 for disability payment.
Similarly, someone over State Pension age claiming Pension Credit and PIP, could be due £800 (as above) plus the additional £300 Pensioner Cost of Living Payment which is being added to Winter Fuel Payments in November/December.
If you have a complex set of benefits, contact DWP or an independent benefits advisor such as Citizens Advice to get a better understanding of what help you will receive.
You do not need to apply for any of these payments, if you are eligible payments will be made automatically.
£650 Cost of Living Payment
When is it paid: from July 14 and another date yet to be confirmed in the autumn
You may get a payment of £650 paid in 2 lump sums of £326 and £324 if you’re getting any of the following:
- Universal Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credits - see further down for full details
- Child Tax Credits - See further down for full details
Eligibility for £650 payment
To get the first Cost of Living Payment of £326, you must have been entitled to a payment (or later found to be entitled to a payment) of either:
Universal Credit for an assessment period that ended in the period April 26, 2022 to May 25, 2022
Income-based JSA, Income-related ESA, Income Support or Pension Credit for any day in the period April 26, 2022 to May 25, 2022
The DWP said it will update the guidance when the Uk Government has announced the qualifying dates to get the second payment of £324.
If you have a joint claim with a partner, you will get one payment of £326 and one payment of £324 for your joint claim, if you’re entitled.
You will not get a payment if you get New Style Employment and Support Allowance, Contributory Employment and Support Allowance or New Style Jobseeker’s Allowance, unless you get Universal Credit.
When you will be paid
DWP said: “Most of the first payments of £326 will be made between July 14, 2022 and the end of July 2022. We will update this guidance when payments have been made.
“You’ll get the second payment of £324 in autumn 2022, if you’re entitled.”
£650 payment if you get Tax Credits
You may get a payment of £650 paid in two lump sums of £326 and £324 if you have an award of any of the following:
- Child Tax Credit
- Working Tax Credit
Eligibility
To get the first Cost of Living Payment of £326, you must have received a payment, or an annual award of at least £26, of Tax Credits on any day in the period April 26, 2022 to May 25, 2022.
The guidance will be updated when the UK Government has announced the qualifying dates to get the second payment of £324.
If you have a joint claim with a partner, you will get one payment of £326 and one payment of £324 for your joint claim, if you’re entitled.
If you get both Child Tax Credit and Working Tax Credit, you will receive a Cost of Living Payment for Child Tax Credit only.
When you will be paid
If you only receive Tax Credits, you will get the first payment of £326 from autumn 2022 and the second payment of £324 from winter 2022 - if you’re entitled.
If you get Tax Credits from HMRC and a low income benefit from DWP, you will get a Cost of Living Payment from DWP only, starting from July 14.
If you also get a qualifying disability benefit, you may get an additional Disability Cost of Living Payment from DWP.
Who is not eligible for the £650 payment?
You will not get a payment if you get the following benefits, unless you also receive Universal Credit.
- New Style Employment and Support Allowance
- Contributory Employment and Support Allowance
New Style Jobseeker’s Allowance
£150 if you get certain disability benefits
You may get a lump sum payment of £150 if you’re getting any of the following:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment
- Child Disability Payment
- Armed Forces Independence Payment
- War Pension Mobility Supplement
Eligibility
You must have received a payment (or later receive a payment) of one of these qualifying benefits for May 25, 2022 to get the payment.
If you get a qualifying disability benefit from the Ministry of Defence (MOD) and a qualifying disability benefit from DWP, you will get a Disability Cost of Living Payment from DWP only.
When you will get paid
Payments will be made from September 2022.
If you also get a qualifying low income benefit or Tax Credits, you may get an additional Cost of Living Payment.
£300 one-off payment for people of State Pension age
All eligible pensioner households will get the one-off ‘Pensioner Cost of Living Payment’ added as a top-up to their annual Winter Fuel Payment in November/December.
We have a full guide to all the different household combinations that qualify for the £300 payment here.
Eligibility
People will be eligible for this payment if they are over State Pension age (aged 66 or above) between 19-25 September 2022 and in receipt of the Winter Fuel Payment
The £300 is not taxable and will be paid on top of any other one-off support a pensioner household is entitled to, for example where they are on Pension Credit or receive disability benefits
The payment does not affect eligibility for other benefits
Who does not qualify for £300 payment?
There are certain circumstances where an individual above State Pension age does not qualify for the Winter Fuel Payment which can be found on GOV.UK, here
We have a full breakdown of all the Winter Fuel Payment scenarios here.
When you will get paid
Payments will be made over November and December.
£400 discount off energy bills
The UK Government will pay the £400 directly to energy suppliers who will deliver this support to households with a domestic electricity meter over six months from October.
Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher - this will depend on whether they have a smart meter or not.
Who qualifies for the £400 energy bill grant:
- Domestic energy users in Scotland, England and Wales - equivalent support will be delivered to people in Northern Ireland
Other key points about the payment:
- The £400 does not need to be repaid
- This support is on top of the £150 Council Tax rebate for households in bands A-D (and with a reduction in Scotland), which was announced in February, and which millions of households have already received
You can read detailed examples of how the additional support packages will affect different types of households on he GOV.UK website here.
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