With the recent announcement and timeline for the next wave of cost of living payments by the Department for Work and Pensions, bristol live recently reported that some eight million families were expected to receive the first payment of £301 this spring. However, not everyone claiming benefits will automatically qualify for the £900 means-tested payment.
The Daily Record reports that the first of the payments will be made to qualified benefit claimants, including Universal Credit, Pension Credit and Tax Credits, adding that gov.uk guidance indicates that eligibility for cost-of-living payments will follow. 2023/24 same criteria as last year. This means applicants will need to receive Universal Credit, along with their non-qualifying benefit in order to receive the first payment of £301 in a few weeks.
The guidance states: “You will not receive a payment if you were receiving a new-style employment and support allowance, a contributive support and employment allowance, or a new-style jobseeker’s allowance, unless you were also receiving Universal Credit.” Here’s more information on who isn’t eligible and why, as well as the upcoming payment schedule and how to check…
Read more: DWP cost of living payments: 8m families to receive first £301 this spring
Universal Credit ‘zero prizes’
You will not be eligible for the next cost of living payment if your Universal Credit is reduced to £0 for the qualifying assessment period. This is often called a ‘void award’ and this can happen if:
- Receive more than one payout of winnings
- Your income or your partner’s income increases
- Your savings, or those of your partner, increase
- You start receiving another benefit
However, if money has been taken away for other reasons, such as rent payments to your landlord or for money you owe, you may still be eligible. Nearly 551,000 Universal Credit applicants missed out on their first cost of living payment of £326 last summer due to a mis-allocation.
The DWP has previously explained that the £900 payment will be made up of three different amounts (£301, £300 and £299) related to specific qualification periods to make it easier to determine if an individual has received the correct payments. It also means that Universal Credit applicants at work may qualify for one or more of the payments, especially if they don’t always receive a ‘void award.’
Cost of Living Payment Schedule
- £301: First means-tested payment due this spring
- £150: Disability payment due this summer
- £300: Means-tested second payment due this fall
- £300: The pensioner’s payment will be added to the winter fuel payment 2023/24
- £299: Third means-tested payment due Spring 2024
There are several benefits that could make applicants eligible for the £301 cost of living payment, including the Universal Credit and Tax Credits, through which 5.4 million households across the UK are expected to qualify. Kingdom, and Pension Credit, through which 1.4 million retired households are expected to pay. Some 1.3 million applicants will be eligible through legacy DWP benefits, such as the job seeker’s allowance and income support, reaching a total of 8.1 million households.
In addition, eligible individuals do not need to apply for payments as they are made automatically and those eligible for cost of living payments through tax credits, and no other means tested benefits, will be paid by HMRC shortly after the payments are made. DWP payments. You can read more about eligible claimants here.