Cost of Living Payments

Many people are struggling to make ends meet with the current cost of living crisis with rent/mortgage increases, fuel, energy, food and everyday items prices continuing to rise.

In response to this, the government made a series of payments available to support households throughout 2022 to 2024 that have included payments, council tax support, energy bill support, and a cap on energy costs that ended in June 2023

Those on certain benefits or tax credits are able to get further help with the cost of living.

If you are eligible, you will be paid automatically and you do not need to apply. These payments are not taxable and will not affect the benefits or Tax Credits you receive.

Support for 2023-24

The government announced on 17th November 2022 a series of new cost of living payments to help millions of households across the country mitigate soaring inflation and ever-increasing energy bills

This would be further support for the most vulnerable households, with further cost of living payments worth up to £1,350.

This includes £900 to households on certain means-tested benefits, including Universal Credit, Tax Credits and Pension Credit. (see below)

Another £150 would go to people on disability benefits including Personal Independence Payment.

And it would give another £300 to pensioner households who already receive a Winter Fuel Payment.

The Department for Work and Pensions (DWP) made the first part of the £900 means-tested cost of living support in April/May with more than eight million households across Great Britain receiving £301 directly into their bank accounts.

Subsequent payments of £300 will be paid during 31 October 2023 and 19 November 2023 for most people. The final £299 paid during spring 2024 for most people

These payments were sent out automatically to the account used by claimants for their qualifying benefit, which means nobody needs to apply for the financial support. Payments will appear on accounts as ‘DWP COLP’, along with the claimant’s National Insurance number.

To be eligible for this £900 cost of living support scheme, you need to have been entitled to a payment for one of the qualifying benefits listed below between January 26 2023 and February 25 2023, or payment for an assessment period ending between these dates.

Qualifying benefits for these payments
This will be paid to eligible households receiving the following benefits:

Universal Credit
Income-based Jobseekers Allowance
Income-related Employment and Support Allowance
Income Support
Pension Credit
Working Tax Credit - will be paid by HMRC if no other DWP means-tested benefit is also claimed
Child Tax Credit - paid by HMRC if no other DWP means-tested benefit is also claimed

This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

Up to six million people on the following disability benefits are receiving another £150:

Disability living allowance
Personal independence payment
Attendance allowance
Scottish disability payments
Armed Forces independence payment
Constant attendance allowance
War pension mobility supplement

Those payments were made between 20 June and 4 July.

Previous Support (2022-23)

You may get a payment of £650 paid in two lump sums if you are receiving any of the following:

income-based Jobseeker’s Allowance
income-related Employment and Support Allowance
Income Support
Pension Credit
Universal Credit

If you are entitled, you will get one payment from July 2022 and a second payment in autumn 2022.

You will need to have been entitled to one of these qualifying benefits on 25 May 2022 to get the first payment.

The Government has not yet announced the date from which you need to have been entitled to these qualifying benefits to get the second payment.

If you have a joint claim with a partner, you will get one payment of £650 for both of you, paid in two lump sums from July 2022 and in autumn 2022, if eligible.

You will not get a payment if you have already received a Cost of Living Payment from HMRC because you were entitled to tax credits.

If you receive New Style Employment and Support Allowance or New Style Jobseeker’s Allowance, you will not be entitled to the Cost of Living Payment, unless you get Universal Credit or a disability benefit as well.

If you also receive a qualifying disability benefit, you may get an additional Disability Cost of Living Payment.

You may get a payment of £650 paid in two lump sums if you have an award of any of the following:

Child Tax Credit
Working Tax Credit

If you are entitled, you will get one payment from autumn 2022 and a second payment from winter 2022.

You will need to have been entitled to Tax Credits on 25 May 2022 to get the first payment.

The Government has not yet announced the date from which you need to have been entitled to Tax Credits to get the second payment.

If you have a joint claim with a partner, you will get one payment of £650 for both of you, paid in two lump sums in autumn 2022 and in winter 2022.

You will not get a payment if you have already received a Cost of Living Payment from DWP because you were getting a low income benefit.

If you also receive a qualifying disability benefit, you may get an additional Disability Cost of Living Payment from DWP.

You may get a lump sum payment of £150 if you receive any of the following:

Attendance Allowance
Constant Attendance Allowance
Disability Living Allowance
Personal Independence Payment
Armed Forces Independence Payment
War Pension Mobility Supplement

You will need to have been entitled to one of these qualifying benefits on 25 May 2022 to get the payment.

You will get the payment by the end of September 2022.

If you also receive a qualifying low income benefit or Tax Credits, you may get an additional Cost of Living Payment.

If you are entitled to a Winter Fuel Payment for winter 2022 to 2023, you will get an extra £300 paid with your normal payment from November 2022. This is in addition to any Cost-of-Living Payment you get with your benefit or tax credits.

Last updated: 18/10/2023

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