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- Who receives the cost of living payment and how does it work?
The £900 government support package is being paid in three separate instalments, with the second £300 payment set to be paid automatically to those entitled to the benefit from the end of October. The first instalment was paid from 25 April, and the final instalment will be paid next spring.
The support was originally announced in the 2022 Autumn Statement and is aimed at helping people struggling with the cost of living crisis as essential costs such as food and energy continue to soar. According to government figures, around eight million who receive means-tested benefits will be entitled to the grant.
The £900 payments follow a £650 grant for people in receipt of means-tested benefits that was paid in two instalments last year.
Who qualifies for the £900 cost of living payments?
You should be entitled to the £900 cost of living payments if you receive one or more of the following benefits: Universal Credit; income-based Jobseeker’s Allowance; income-related Employment and Support Allowance; income support; Pension Credit; Working Tax Credit, and Child Tax Credit.
Similarly to the previous £650 cost-of-living payments in 2022, the payments are a tax-free grant, and will not affect your existing benefits.
Mel Strike, the Work and Pensions secretary, said: “The best way we can boost bank balances is by bearing down on inflation, but as we get there, we are ensuring the most vulnerable households are cushioned from high prices with a further cost-of-living payment.”
When should the £900 cost of living payments be received?
The cost of living payments are spread out to ensure that financial support is received throughout the year for the households who need it most.
The first payment should have been received by 17 May 2023 for people on DWP benefits, or between 2 and 9 May 2023 for people on tax credits, meaning all those eligible should now have received the first payment. The second payment, of £300, should be paid by 19 November, and £299 will be the third payment made in spring 2024.
A spokesman for the DWP said: “While payments are made automatically, people must be receiving one of the eligible qualifying benefits during the specified period to qualify. Those who wish to check their entitlement to benefits should use a benefits calculator on Gov.uk to get a better idea of what they could receive.
“Low-income pensioners particularly should check their eligibility for Pension Credit, as they may still be able to receive the £301 Cost of Living Payment, and subsequent payments, if they make a successful backdated application by 19 May 2023.”
Find out more about Pension Credit in our guides Pension Credit: are you missing out on £3,500 a year? And Pension Credit explained.
What other cost of living support is available?
The government paid a separate £150 disability cost of living payment in summer 2023. This was paid to anyone in receipt of the following benefits: Disability Living Allowance; Personal Independence Payment (PIP); Attendance Allowance: Scottish Disability Benefits; Armed Forces Independence Payment; Constant Attendance Allowance; War Pension Mobility Supplement.
If you’re entitled to Winter Fuel Payment, you’ll get an extra £300 Pensioner Cost of Living payment in the winter of 2023/24. This is on top of between £100 and £300 towards energy bills from the Winter Fuel Payment. The amount you receive depends on when you were born, your living situation and benefits entitlement. You should receive this extra payment automatically if you’re entitled to it. Find out more in our article Pensioners to receive up to £600 towards energy bills and Winter Fuel Payment: who gets it and when is it paid?
Myron Jobson, senior personal finance analyst at Interactive Investor, said: “The various cost-of-living support schemes and measures past and present have and will help to ease the inflationary crunch on budgets – but most have a shelf life.
“It remains important to have a comprehensive understanding of your financial position and make the necessary adjustments to ensure that your financial position holds strong long after the cost-of-living measures expire.”
Find out more about financial support you might be entitled to in our article 26 sources of support if you receive benefits or are on a low income.
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Harriet Meyer is Deputy Money Editor at Rest Less. An award-winning financial journalist, she has more than 20 years' experience writing about personal finance for broadsheet newspapers, consumer websites and magazines. Previously, she worked as editor of The Observer's 'Cash' section, and was part of The Daily Telegraph's Money team. She's also worked as a BBC producer on radio money shows such as Wake Up to Money. Harriet lives in South West London with her partner, and giant cat. She enjoys yoga and exploring the world in her spare time.
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