Millions of households are set to receive a £301 cost of living payment from today as part of the UK Government’s £900 support package for those on means-tested benefits. The Department for Work and Pensions (DWP) will make payments to some 7.2million households across Great Britain, including 686,000 in Scotland, between April 25 and May 17, 2023.
More than four million payments are expected to be received by families qualifying due to an entitlement to Universal Credit and just under 1.4 million pensioner households can expect the money to land automatically in their bank account at some point during the payment window. Payments will appear on accounts as ‘DWP COLP’, along with the claimant’s National Insurance number.
The remainder of families will qualify due to entitlement to legacy DWP benefits such as Income-based Jobseeker’s Allowance (JSA), Income-related Employment and Support Allowance (ESA) and Income Support. A further 890,000 people on Tax Credits-only will receive the money between May 2 and 9, directly from HM Revenue and Customs (HMRC).
Commenting on the start of the payment window, Mel Stride, Secretary of State for Work and Pensions, said: “This latest additional payment will be welcomed by millions of families - as will further payments due over the next year.
“We have continually supported those most vulnerable to rising costs, including through record benefits and national living wage increases as well as these exceptional Cost of Living Payments responding to the global pressures we are facing.
“We will also continue to deliver on our five priorities, including halving inflation, as this will ease pressure on households currently struggling with household bills and rising prices.”
Jeremy Hunt, Chancellor of the Exchequer, added: “The best thing we can do to help people’s money go further is deliver on our priorities to halve inflation and grow the economy.
“But we’re also here to help people through these tough times, which is why we’re holding down energy bills, freezing fuel duty, increasing Universal Credit, and giving £900 payments to low income and vulnerable families - all in part funded through windfall taxes on energy profits.”
Breakdown of £301 payments by benefit
- Universal Credit - 4,513,000
- Pension Credit - 1,384,000
- Income Based ESA - 1,128,000
- Income Support - 148,000
- Income based JSA - 34,000
- Tax Credits - 891,000 (to be paid between May 2-9)
- Total - 8,097,000
Qualifying benefits
The £301 payment will be made 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.
Benefits that do not qualify for £301 payment
You will not get a payment if you are only getting:
- New Style ESA
- Contributory ESA
- New Style JSA
Joint claims
If you have a joint claim on the qualifying dates, a single payment of £301 will be sent using the same payment method, if you’re eligible.
Universal Credit eligibility
You are eligible for the £301 cost of living payment if you were entitled to a payment, or later found to be entitled to a payment, of Universal Credit for an assessment period that ended in the period January 26, 2023, to February 25, 2023.
Universal Credit ‘nil awards’
Updated guidance on GOV.UK explains: "You will not be eligible for the Cost of Living Payment if your benefit is reduced to £0 for the qualifying period. This is sometimes called a ‘nil award’.
Reasons your benefit may be reduced to £0 include:
- you got more than one payment of earnings in your Universal Credit assessment period
- your or your partner’s earnings went up
- your or your partner’s savings went up
- you started getting another benefit
- you got a ‘sanction’ because you did not do something you agreed in your claimant commitment
You may still be eligible for a Cost of Living Payment if your benefit is reduced to £0 and one of the following applies:
- money was taken off your benefit for other reasons, such as payments of rent to your landlord or for money that you owe
- you had a hardship payment because you got a sanction and could not pay for rent, heating, food or hygiene needs
Pension Credit and other income-related benefits
Guidance on GOV.UK explains that people on Income-based JSA, income-based ESA, Income Support and Pension Credit will be due the £301 payment if they were entitled to a payment - or later found to be entitled to a payment - of those benefits for “any day in the period January 26, 2023 to February 25, 2023”.
It adds: “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.”
New Pension Credit claims and £301 payment
The DWP is also encouraging low-income pensioners not already getting Pension Credit to check their eligibility, as they can still qualify for the £301 cost of living payment if they make an application for Pension Credit application before May 19, 2023, which later turns out to be successful.
This is because Pension Credit is a retrospective benefit that can be backdated by up to three months, taking it to within the qualifying period (January 26 - February 25).
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.
Tax Credits
People on Working Tax Credits or Child Tax Credits and a qualifying DWP benefit will receive their payment from DWP between April 25 and May 17, 2023. For those in receipt of Tax Credits-only, the payment will be made through HMRC between May 2 and May 9, 2023.
You will be eligible for the £301 payment if you received a payment of Tax Credits for any day in the period January 26, 2023, to February 25, 2023, or you are later found to have been entitled to a payment for this period.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, o r subscribe to our newsletter which goes out Monday to Friday - sign up here.
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2023-04-25 03:30:00Z
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