Millions to get £301 cost of living payment from next week
More than eight million Britons will begin receiving a £301 cost of living payment next week. This £301 boost is the first of three cost-of-living payments for means-tested benefit recipients that will be paid this year.
The payments will be made to those on certain means-tested benefits, all receiving theirs by Wednesday, May 17.
The £900 payment is split into three instalments, with £301 will be paid out in the coming weeks.
This could be vital for many families struggling to keep up with rising bills.
Since April, many have seen several bills rise including water bills, energy bills and council tax so any extra cash will be welcomed.
Another two payments worth £300 and £299 will be sent out by the DWP later this year.
There will also be a £150 payment for eligible disabled people and a £300 payment for pensioners later this year.
The first payment will be sent out automatically so claimants do not need to apply to get the sum.
Britons are warned to remain vigilant for any cost of living scams which require registration to get the payment as this is not the case.
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The payment reference for bank accounts will be DWP COLP, along with the claimant’s National Insurance number.
While payments will start on April 25, some eligible households may not receive the payment until May 17.
Who is eligible for the DWP £900 cost of living payment?
The full list of benefit recipients that qualify for the upcoming instalment of the £900 Cost of Living payment are those who receive:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit – this is paid by HMRC if no other DWP means-tested benefit is also claimed
- Child Tax Credit – this is paid by HMRC if no other DWP means-tested benefit is also claimed
- Pension Credit
The qualifying period for this payment is between January 26 and February 15, 2023.
This payment will be tax-free, and will not count towards the benefit cap.
It will not have any impact on existing benefit awards.
It should be noted that the DWP encourages 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 a successful backdated Pension Credit application by May 19.
People can check their eligibility for Pension Credit using the online calculator on GOV.UK or by calling the Pension Credit helpline on 0800 99 1234.
When will the cost of living payments be paid?
The first payment will be paid into most customers’ bank accounts between:
- April 25 and May 17 for most people on DWP benefits
- May 2 and 9 for most people on tax credits and no other low-income benefits
Not all exact dates have been announced for subsequent payments, but this is the rough timescale from the DWP:
- First cost of living payment – £301 – April 25 to May 17
- Disability payment – £150 – Summer 2023
- Second cost of living payment – £300 – Autumn 2023
- Pensioner payment – £300 – Winter 2023
- Third cost of living payment – £299 – Spring 2024
Announcing the upcoming payments, John Glen, chief secretary to the treasury, said: “Higher prices make life difficult for everyone, which is why our priority is to halve inflation this year.
“But we are also going further to support those struggling most, with a total package of support worth an average of £3,300 per household this year and next – including up to £900 in direct cash payments starting next month for families receiving tax credits.”
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