Cost of Living Payments 2023 to 2024

A support package has been implemented to address the increasing cost of living, offering one-time payments to individuals receiving income-related benefits, disabled claimants, and pensioners. These payments aim to provide assistance and relief in light of the current cost-of-living challenges.

Who is eligible for cost of living payment 2023

If you are currently receiving specific benefits or tax credits, you may qualify for up to five payments designed to assist with the cost of living.

There is no need for you to take any action to apply for these payments. If you meet the eligibility criteria (or if you are deemed eligible at a later date), the payments will be automatically deposited in the same manner as your regular benefit payments or tax credits.

These supplementary cost of living payments will be issued separately from your normal payments. They are non-taxable and will not impact any of the benefits or tax credits you currently receive.

In the event that you receive a Cost of Living Payment but are subsequently deemed ineligible, there is a possibility that you may be required to repay the amount received.

If you receive any of the benefits or tax credits listed below, you may be eligible to receive up to three Cost of Living Payments:

Income Support

Universal Credit

Child Tax Credit

Pension Credit

Working Tax Credit

income-based Jobseeker’s Allowance (JSA)

income-related Employment and Support Allowance (ESA)

Key dates for the first cost of living payment in 2023

1. If you are currently receiving benefits from the Department for Work and Pensions (DWP), you may be entitled to receive a payment of £301. This payment will be made between 25 April 2023 and 17 May 2023.

2. If you only receive tax credits, you may be eligible for a payment of £301, which will be made between 2 and 9 May 2023.

3. Additionally, there will be a payment of £300 during the autumn of 2023 and a payment of £299 during the spring of 2024.

4. Please note that the specific dates and amounts mentioned above are subject to change and may be dependent on eligibility criteria and government guidelines.

Here are some additional considerations to keep in mind:

If you receive both Child Tax Credit and Working Tax Credit, you will be eligible for a Cost of Living Payment specifically for Child Tax Credit. This payment will be issued by HMRC.

If you receive tax credits from HMRC and also receive a low-income benefit from DWP, it is important to note that you cannot receive a Cost of Living Payment from both HMRC and DWP. In most cases, you will receive the payment from DWP only.

Check what benefits you can get

If you are experiencing financial difficulties due to the rising cost of living and have a low income, it is advisable to ensure that you are not missing out on any benefits that make you eligible for Cost of Living Payments. These payments can be retroactively applied.

For instance, if you are not currently receiving Pension Credit, it is recommended to check your eligibility. By successfully applying for Pension Credit with a backdated claim by 19 May, you may still qualify for the £301 Cost of Living Payment.

£301 Cost of Living Payment eligibility

Universal Credit

If you received or were later determined to be eligible for Universal Credit payment for an assessment period ending between 26 January 2023 and 25 February 2023, you qualify for the initial Cost of Living Payment amounting to £301.

Income-based JSA, income-based ESA, Income Support and Pension Credit

If you received or were later determined to be eligible for a payment of income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), Income Support, or Pension Credit for any day between 26 January 2023 and 25 February 2023, you are eligible for the first Cost of Living Payment, which amounts to £301.

Here is additional information regarding the low-income Cost of Living payment:

If you qualify for the payment, you will receive:

• A payment of £301, made between 25 April 2023 and 17 May 2023, for most individuals.
• A payment of £300, to be paid during autumn 2023, for most individuals.
• A payment of £299, to be paid during spring 2024, for most individuals.

Please note that your payment may be delayed if you become eligible for a qualifying benefit at a later date or if you change the account in which your benefit or tax credits are deposited. However, you will still receive the Cost of Living Payment automatically.

If you receive tax credits but no other low-income benefits, you will receive your Cost of Living Payment from HMRC if you meet the eligibility criteria. The £301 payment for individuals receiving tax credits and no other low-income benefits was made between 2 and 9 May 2023, for most individuals.

If you receive both Child Tax Credit and Working Tax Credit, you will only receive a Cost of Living Payment for Child Tax Credit.

If you have already received a low-income (means-tested) Cost of Living Payment from the Department for Communities/DWP, you will not receive a Cost of Living Payment from HMRC.

When you will not be eligible: ‘Nil awards’

There are instances where you will not be eligible for the Cost of Living Payment. This is referred to as a ‘nil award,’ meaning that your benefit amount for the qualifying period is reduced to £0.

For instance, if you receive Universal Credit, your benefit may be reduced to £0 for various reasons. Some examples include receiving more than one payment of earnings, an increase in your or your partner’s earnings, an increase in your or your partner’s savings, or if you start receiving another benefit.

However, if deductions have been made for other reasons, such as payments of rent to your landlord or for outstanding debts, you may still be eligible for the Cost of Living Payment.

Disability benefits

If you receive any of the following disability benefits on a specific date, you may be eligible for a lump sum payment of £150:

• Attendance Allowance
• Constant Attendance Allowance
• Disability Living Allowance for adults
• Disability Living Allowance for children
• Personal Independence Payment
• Armed Forces Independence Payment
• War Pension Mobility Supplement

Please note that if you receive multiple disability benefits from the above list, only one Disability Cost of Living Payment will be payable.

Most individuals received the automatic payment of £150 for the Disability Cost of Living Payment between 20 June 2023 and 4 July 2023.

To be eligible for the payment, you must have received or will receive a payment of one of these benefits for 1 April 2023.

It is possible that your payment may be delayed if you become eligible for a qualifying benefit at a later date or if you change the account in which your benefit is paid. However, you will still receive the payment automatically.

Pensioner Cost of Living Payment

If you are eligible to receive a Winter Fuel Payment for winter 2023 to 2024, you will receive an additional payment of £150 or £300, which will be included with your regular payment starting from November 2023.

The exact amount of the Winter Fuel Payment, including the Pensioner Cost of Living Payment, that you will receive for winter 2023 to 2024 depends on your date of birth and your circumstances during the qualifying dates.

To be eligible for the Winter Fuel Payment for winter 2023 to 2024, you must have been born before 25 September 1957.

The page will be updated with the qualifying dates for the payment as soon as they are published.

In October or November 2023, you will receive a letter informing you of the amount of Winter Fuel Payment you are eligible to receive if you meet the criteria.

Report missing Payment for low income benefit or tax credits

For the majority of individuals receiving low income benefits and tax credits, a £301 Cost of Living Payment was disbursed between 25 April 2023 and 17 May 2023.

If you were anticipating the £301 Cost of Living Payment but are unable to locate it in your bank, building society, or credit union account, you have the option to notify the relevant benefit office about the missing payment.

In the event that you have already reported a missing payment, there is no need to submit an additional report.

Report a missing Disability Cost of Living Payment

If you were anticipating the £150 Disability Cost of Living Payment, which was typically distributed between 20 June 2023 and 4 July 2023, but you are unable to locate it in your bank, building society, or credit union account, you have the option to report the missing payment.

Report a missing Cost of Living Payment paid in 2022

If you believe you were entitled to receive the £326 or £324 low income payment in 2022, but it is not visible in your bank, building society, or credit union account, you have the option to report the missing Cost of Living Payment to the relevant benefit office.

Similarly, if you expected to receive the £150 Disability Cost of Living Payment in 2022 but it is not reflected in your bank, building society, or credit union account, you can report the missing payment to the office responsible for disbursing your benefits.

Individuals who solely receive the following benefits will not qualify for a Cost of Living Support payment:

-Carer’s Allowance

-New-Style or contribution-based Jobseeker’s Allowance (unless accompanied by Universal Credit or a disability benefit)

-New-Style or contribution-based Employment and Support Allowance (unless accompanied by Universal Credit or a disability benefit)

-Incapacity Benefit

-Industrial Injuries Disablement Benefit

Scams about Cost of Living Payments

If you receive an email or text message that appears suspicious and claims to be from GOV.UK, the Department for Work and Pensions (DWP), or the Department for Communities, requesting your bank details, it is important to report it.

It is important to note that DWP or the Department for Communities will not solicit bank details through text or email, nor will they provide a link to click on within a text or email. If you have received a message prompting you to apply for a payment or contact someone regarding the payment, there is a possibility that it could be a scam.