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David Bentley & Mike Kelly

These benefits claimants will miss out on £500 in DWP cost of living payments

The way the Government 'Cost of Living' support package is being allocated has led to heavy criticism. Fears have been expressed by people on health and disability benefits such as Personal Independent Payment (PIP) and Disability Living Allowance (DLA) that they will miss out on hundreds of pounds of help.

The measures put forward by Chancellor Rishi Sunak will see this group of claimants getting £500 less than those on means-tested benefits. As a result a new petition has been launched asking for the disabled and chronically ill to be given more money, reports BirminghamLive.

Around six million people on disability benefits will get £150 in September whereas around eight million on seven means-tested benefits like Universal Credit will get a much higher amount of £650, to be paid in two instalments - the first in July, the second in the autumn.

Read more: DWP error means 160,000 benefit claimants could be owed thousands of pounds

The petition has been set up by Abigail Broomfield who says disabled people and carers should get the £650 sum too. It has nearly 4,000 signatures at present and will be considered for debate in parliament if it reaches 100,000.

The £150 payment will go to those who receive Disability Living Allowance (DLA), Personal Independence Payment (PIP), Attendance Allowance, Scottish Disability Benefits, Armed Forces Independence Payment, Constant Attendance Allowance and War Pension Mobility Supplement.

Ms Broomfield wrote on the petition: "Disabled people should be included alongside carers in the £650 one-off payment as part of the Cost of Living support package. We have larger utilities bills and food costs when compared to non-disabled people. We rely on these utilities and food to stay alive."

She also issued an alarming warning over the impact of the gap in cash support, saying: "Without including disabled people for the full £650 entitlement, many more disabled people could die. We might have to switch off or use our equipment less which is vital for our survival.

"We could be unable to purchase specific food for our dietary requirements. We might be unable to be warm. This could lead to more hospitalisations and death. Most disabled people already suffer from mental health problems and this will only increase. This could lead to more suicides and death."

Those people getting the £150 disability cost of living payment this September will, like all other UK households, also receive the £150 energy rebate through the council tax system and the £400 energy rebate from suppliers from October. They may also be eligible to get money from the Household Support Fund, depending on the rules for their local authority.

Other campaigners also criticised the Chancellor's measures, with Legacy Benefits Info telling BirminghamLive: "Mr Sunak is finally doing something about the cost of living crisis. But it could have been more targeted to the most vulnerable. Increasing benefits would have been a simpler solution as those on contribution-based benefits seem to have been excluded - and also carers seem to have been forgotten.

"The 2.4 million people on legacy benefits and the 120,000 carers didn't receive the Covid uplift given to Universal Credit totalling £1,560 and have been suffering and starving in real poverty long before this latest crisis. There are those who are terminally ill and for some sadly this latest promise of help has been much too late. The implications are far-reaching."

Who gets the £650 Cost of Living payment?

The Government says the £650 Cost of Living payment will go to all households receiving the following seven benefits:

  1. Universal Credit
  2. Income-based Jobseekers Allowance (JSA)
  3. Income-related Employment and Support Allowance (ESA)
  4. Income Support
  5. Working Tax Credit
  6. Child Tax Credit
  7. Pension Credit

Claimants will need to be in receipt of one of the benefits mentioned above, or have begun a claim (which is later successful) as of May 25, 2022, to be eligible for the first of the two instalments. The Government says it will later set out the eligibility date for the second instalment.

This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on the amount anyone already receives in state support, the Government guidance says. Payments will go directly to households across the UK in the same way you receive your regular benefits, such as a bank or building society account.

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