Money Matters: Cost of Living Payments Update
In this week's Money Matters column, Wrekin's Debt & Energy Manager Dan Bebbington discusses when support for those struggling financially will be paid during this financial year.
The Department for Work and Pensions (DWP) has revealed when millions of UK households can expect to receive their first Cost of Living payment in 2023/24.
The £301 sum is expected to arrive directly into the bank accounts of those eligible between 25 April and 17 May.
It’s the first of three payments totalling up to £900 that will be given during the financial year for people who qualify, including those on means-tested benefits, such as Universal Credit or Pension Credit.
Further amounts are expected later this year, including £150 for disabled people and £300 for pensioners, meaning the most vulnerable could receive up to £1,350.
The DWP has said that the £301 payment will be sent out automatically, meaning that if you’re eligible then you don’t need to apply or do anything to receive it.
The payment reference that will show up in your bank account will be DWP COLP, along with your National Insurance number.
People that qualify for the upcoming Cost of Living payment include recipients of:
- Universal Credit;
- Income-based Jobseekers Allowance;
- Income-related Employment and Support Allowance;
- Income Support;
- Working Tax Credit;
- Child Tax Credit;
- Pension Credit
In order to be eligible for the payment, you need to have been entitled to one of these benefits between 26 January and 25 February 2023, or for an assessment period ending between those dates.
If you’re a pensioner with a low income and you don’t already receive Pension Credit then we would strongly urge you to check you eligibility.
You could still qualify for the Cost of Living Payment if you make a successful backdated Pension Credit application by 19 May.
If you live in a household with a low income, you should also contact your local authority to see what support is available for essential food and energy costs through the Household Support Fund.
People eligible for the £301 payment only via tax credits and not through means-tested benefits have been advised they will be paid by HMRC shortly after the DWP payments begin.
In the meantime, remember that you don’t need to apply or contact the government at any stage to receive the Cost of Living payment, so be on your guard against scammers trying to exploit the situation.
Please visit our cost of living support page for more information on how we can help you.
6th April 2023