A one-off cost of living payment of £900 will be sent to people on means-tested benefits over this year and next as households continue to stuggle with household bills amid high inflation and rising prices.
Those eligible for the payment, such as people claiming Universal Credit, should have already received their first installment worth £301 - with two more payments of £300 and £299 coming up.
There is no need to apply for the payments as they are automatically paid to eligible people in the same way that their benefits are paid. To be eligible for the £900, you must be in receipt of one of the following benefits during the qualifying period: income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), Income Support, Pension Credit or Universal Credit.
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People who claim Child Tax Credit or Working Tax Credit are also eligible for the payments but they will be sent by HMRC instead of the DWP, and are paid at a later date.
When will the £300 cost of living payment be made?
Those waiting for their second installment may have a few months to wait.
The DWP is yet to reveal the exact dates that the second and third installments of the £900 payment will be made. However, the dates of last year's payments may provide a clue as to when they can be expected.
In 2022, the government handed out a cost of living payment worth £650 to people on means-tested benefits such as Universal Credit. While this year's £900 payment is being split into three separate installments, last year's £650 payment was split into just two - one of £326 and one of £324.
The first installment was paid to the majority of eligible people between July 14 and 31, while the second payment was made between November 8 and 23. That means the two installments were paid roughly four months apart.
This year, eligible people were sent the first of three installments between April 25 and May 17. If the DWP sticks to a four-month period between payments, that would suggest the next payment could be made towards the end of next month, on August 22.
However, the government has previously said that the second installment will be made in the autumn, which suggests September or October is more likely. The government could also decide to replicate last year's timetable and pay the second installment at the start of November.
When will exact payment dates be announced?
The DWP is expected to announce the exact payment dates ahead of time. Last year, the dates were announced around a month beforehand.
The department confirmed the payment date for the first installment on June 15 - four weeks ahead of the first payments being made. The DWP then confirmed that the second installment would be paid in November on October 3 - which was five weeks ahead of the first payments being made.
The pattern seems to have continued this year with the payment date for the first installment of the £900 payment announced four weeks before the payment window started.
What other cost of living payments are coming up?
The £900 cost of living payment is one of three cost of living payments provided by the government this year. People on disability benefits are eligible for a £150 payment, while pensioners will also be eligible for a payment of up to £300. That means the total amount of support that one person may be able to get over this year and next is £1,050.
As the £900 payment is split into three installments, there are five payments in total being sent out.
The first installment of the £900 payment - set at £301 - was the first to be paid in April. That was then followed by the disability payment of £150 at the end of June.
The payment window for the £150 disability payment has now closed and anyone who thinks they are missing their payment will be able to report it on the DWP website from tomorrow. You can read more about that here.
Here is when the remaining three cost of living payments for 2023/24 can be expected.
- £300 – Second Cost of Living Payment – during Autumn 2023
- £300 – Pensioner Cost of Living Payment – from November (with Winter Fuel payment)
- £299 – Third Cost of Living Payment – during Spring 2024
