MILLIONS of hard-up households will begin to receive a £900 cost of living payment from April – but many won’t qualify.
The free cash will be paid out in three instalments to help those on certain benefits with the cost of living.
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The first payment of £301 will be made in the spring, with a second of £300 in the autumn and a final £299 instalment in the spring of 2024.
More than eight million people will have the cash paid directly into their bank accounts.
But only those on six types of benefits including Universal Credit will qualify for the free cash.
But those claiming benefits like PIP or attendance allowance won’t be automatically eligible for the cash.
Those on the following benefits only won’t qualify for the £900 one-off cost of living payment:
- Attendance allowance
- Carer’s allowance
- Child benefit
- Disability living allowance (DLA)
- Contributory, or “new style”, employment and support allowance (ESA)
- Guardian’s allowance
- Contribution-based, or “new style”, jobseeker’s allowance (JSA)
- Maternity allowance
- Personal independence payment
- State pension
- Statutory adoption, maternity, paternity and shared parental pay
- Statutory sick pay
Instead, you’ll only be able to receive the free cash if you’re in receipt of at least one of the following benefits:
- Income-based jobseeker’s allowance
- Income-related employment and support allowance
- Income support
- Pension credit
- Tax credits (child tax credit and working tax credit)
- Universal Credit
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For the previous payments, you had to be entitled or later found to be entitled to one of these benefits by a certain date.
This certain date will be announced nearer the time, the DWP said.
People receiving tax credits only will be paid the cash by HMRC.
But those receiving tax credits along with a qualifying benefit from DWP will be paid by DWP.
What other help is coming?
Over six million people with disabilities will receive a £150 payment this summer.
The exact eligibility criteria for getting the payment have not been revealed yet.
But those who qualified for last year’s £150 bill help received one of the following benefits:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
More details will be announced in due course.
Millions of pensioners will also receive another £300 cost of living payment later this year.
This follows from last year’s help which was given to households who normally get the Winter Fuel Payment.
It’s not yet known whether households will qualify if they normally receive the Winter Fuel Payment, as exact details have not been revealed yet.
You qualified for the last Pensioner Cost of Living payment if:
- You were born on or before September 25, 1956
- You lived in the UK for at least one day during the week of 19 to 25 September 2022 in what is known as the “qualifying week”
Check what benefits you could be entitled to
Millions are entitled to benefits that they aren’t claiming and which can make them eligible for the £900 cost of living payment.
The quickest way to see what benefits you may be able to claim is to use one of the three benefit calculators recommended by Gov.UK.
Each one is free to use. They are:
- Turn2us
- Policy in Practice
- EntitledTo
Before using the tools, make sure you have key financial information to hand, such as bank and savings statements, and information on pensions and existing benefits.
If you live with a partner or family, get their basic financial information together too as this could affect your claim.
For each of these, you’ll be asked information about your circumstances, such as your current employment and income.
You’ll also need to give information about yourself, including your age and who you live with.
You can then use the contact information on Gov.UK to get the ball rolling and apply for what you’re owed.
Of course, the tools only provide an indicator of what benefits you can claim – and usually don’t include means-tested benefits, so you may be entitled to even more.
