Millions of households will get a £301 boost between Tuesday April 25 and Wednesday May 17, the DWP has confirmed today. It’s the first of three payments, totalling up to £900, which those on eligible means-tested benefits such as Universal Credit and Pension Credit can get in 2023/24.
The DWP said Tax Credit-only customers who are not eligible for a payment from the DWP will get their payment from HMRC shortly after DWP payments begin.
The £301 sum will be sent out automatically and directly to those eligible for it, meaning people who are entitled to it do not need to apply or do anything to get it.
The payment reference for bank accounts will be DWP COLP, along with the recipient’s National Insurance number.
Mel Stride, Secretary of State for Work and Pensions, said: “These payments will give a financial boost to more than eight million households as we continue to wrap our arms around the most vulnerable, while the best way we can protect people from high costs is to halve inflation by the end of this year.
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“In the long-term, we know work is the best route out of poverty, which is why we recently announced additional Work Coach support to help more people find work or increase their hours.
“Anyone looking to boost their skills or progress their career should speak to their work coach to ensure they’re accessing all the support the DWP can provide.”
Jeremy Hunt, Chancellor of the Exchequer, added: “I know that times are tough, which is why a key focus of the Spring Budget was supporting people with the cost of living and helping people into well-paid work.
“Not only are we providing £900 in direct cash payments to millions of the most vulnerable households, we’ve also extended the Energy Price Guarantee to hold bills down until energy prices fall, raised the National Living Wage to £10.42, put an end to the prepayment meter premium and delivered a plan that will more than halve inflation this year – ensuring everyone’s incomes go further.”
Cost of Living Payments 2023 to 2024
While the DWP has laid out when to expect the first part of the £900 cost of living payment, the subsequent payment dates are not yet known.
The first, a £301 boost, will be paid in spring this year – between Tuesday April 25 and Wednesday May 17.
However, the DWP has said a second instalment of £300 paid during autumn 2023 for most people.
The third, a £299 sum, will be paid during spring 2024 for most people.
Separate to the £900 cost of living payment, there will also be a £150 disability payment and £300 for pensioner households paid in the 2023/24 tax year.
These additional sums mean some people will get up to £1,350 in cost of living payments in the financial year.
In 2022, more than eight million people got a £650 Cost of Living Payment to help them during the cost of living crisis, and a £150 disability payment and a £300 sum for pensioner households were also available.
Who is eligible for the £900 cost of living payment?
The full list of people who qualify for the upcoming cost of living payment must get one of the following benefits during the qualifying period of January 26 and February 25, 2023.
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
To get the payment, a person must have been entitled to a payment for one of the aforementioned benefits between January 26 and February 25, 2023, or payment for an assessment period ending between these dates.
Ahead of the payments being made, the DWP is urging low income pensioners to check if they are eligible to get Pension Credit, as they could still qualify for the £301 cost of living payment if they make a successful backdated Pension Credit application by May 19.
Meanwhile, low income households are being encouraged to get in touch with their local council to see if they can get support for essential food and energy costs through the Household Support Fund – worth over £2billion across its lifetime.
People getting the support via HMRC should be aware HMRC will publish the details of when payments will be made, along with the bank account payment reference.