The first Cost of Living Payments from the DWP will start to be made to claimants from next week.
The £301 payments will begin to land into peoples accounts from Tuesday, April 25, and will be made over the next few weeks with those on certain means tested benefits all receiving theirs by Wednesday, May 17.
Those who are only in receipt of Tax Credits will receive the money between May 2 and 9, directly from HM Revenue and Customs (HMRC).
Read more: Cost of Living Crisis: Record number of households receiving Universal Credit in Northern Ireland
However, there are some claimants who may not be eligible for the cost of living payments if their benefit award has been reduced to 'nil' during the qualifying period. Although some may still be able to receive the payment.
The reasons who could receive a 'nil award' are:
- 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 will still be able to receive the Cost of Living payment despite a 'nil award' if:
- 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
Payments will appear on accounts as ‘DWP COLP’, along with the claimant’s National Insurance number. Remember, payments are made automatically, which means nobody needs to apply for the money.
Payments will appear on accounts as ‘DWP COLP’, along with the claimant’s National Insurance number. Remember, payments are made automatically, which means nobody needs to apply for the money.
Below are the details about the qualifying period and qualifying benefits:
Qualifying benefits for £301 payment
The £301 cost of living 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.
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 26 January 2023 to 25 February 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.
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.
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