Millions of people are set to receive a new cost of living payment in the coming months - but many will miss out altogether. The Department for Work and Pensions (DWP) will deliver the first part of a £900 cost of living payment in spring to help with rising living costs.
The first instalment will see households on means-tested benefits given a payment of £301. The department has yet to confirm the qualifying dates or any date for when the money will hit bank accounts, but more details are due in the coming weeks. Chancellor Jeremy Hunt is also set to deliver his spring budget on March 15, which may include further details of financial support for struggling households.
But although around eight million people are expected to be eligible for the £301 payment, some will miss out altogether. Here are the people who will not receive the payment this spring. To get all the latest money-saving news straight to your inbox sign up here.
Read more: The five big changes to your money coming in March
Who will qualify for the £301 payment?
The £301 payment will be paid to eligible households receiving the following benefits:
- Universal credit
- Income-based jobseeker's 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.
Who will not receive the money?
The Daily Record reports that for anyone currently in receipt of universal credit or pension credit, they must receive an award for at least one penny during the qualifying period - whenever that may be. No £301 payment will be given to claimants who have what’s referred to as a ‘nil award’ during that period. The qualifying period hasn't been confirmed, but is expected to be a period of several weeks before the actual date the payment is sent out.
Some contributions-based benefits will also not be eligible for the payment, unless you were also getting universal credit during the qualifying period. The guidance on eligibility for the 2022/23 cost of living payments is expected to be the same for 2023/24. This states: “You will not get a payment if you were getting new style employment and support allowance, contributory employment and support allowance, or new style jobseeker's allowance, unless you were getting universal credit as well."
For the estimated 800,000 older people eligible for pension credit and not claiming, now is the time to check if you qualify. The benefit helps those on state pension with a low income - roughly under £200 per week for single pensioners and £300 for couples.
It is a retrospective benefit, which means claims can be backdated by up to three months, so a new claim submitted over the next few weeks could qualify for the £301 payment. 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.
What other support is available?
As well as the £301 cost of living payment, there will be two further instalments in the autumn and next spring of £300 and £299 respectively. There will also be a £150 disability cost of living payment in summer 2023, and a £300 top-up to the winter fuel payment for 2023/24. You can find out more about these payments here.
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