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DWP: Cost of Living first payment date confirmed plus everything you need to know about the boost

todayJune 23, 2022 2

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There has been plenty in the news about the rise in the cost of living and increasing fuel prices, so when the Chancellor Rishi Sunak announced a package to help with the increasing costs there was at least some good news on the agenda. Now, some eight million homes across the UK will begin to see cost-of-living payments hit their bank accounts.

However, unravelling all the information can be tricky, so here’s what you need to know in a nutshell. To start with, when the payments will start, how much they’ll be and who will get them. From July 14, a first instalment of £326 will start to be paid out to low-income households on benefits, the Department for Work and Pensions (DWP) has announced.

The second portion of the one-off £650 payment will follow in the autumn, as part of support worth £1,200 that vulnerable households will receive this year, which also includes a previously announced £150 council tax rebate. Every household in the country, regardless of how well off they are, will get a £400 discount on energy bills.

READ MORE: National Insurance tax cut calculator shows workers could save hundreds of pounds from July

Chancellor Rishi Sunak said £5 billion of the package will be paid for by a levy on the profits of oil and gas giants, and around £10 billion will be covered by extra borrowing. The extra help will be a lifeline for some. LancsLive reported that new research suggests disabled households in the UK are being pushed into debt by spiralling living costs. People who are disabled and the loved ones who care for them are at “breaking point”, and Government cost-of-living support will only offer temporary relief, according to the disability charity Sense.

Four out of five people surveyed for the charity said they do not believe the measures go far enough. Meanwhile, many people are still unsure which benefits they qualify for and when they will receive it and there is also confusion as to whether a payment is for an individual or if it’s for a household.

The simplified guide below shows the support currently available, excluding the financial help available from some local councils.

£650 Cost of Living Payment

When is it paid: from July 14 and another date yet to be confirmed in the autumn

You may get a payment of £650 paid in 2 lump sums of £326 and £324 if you’re getting any of the following:

  • Universal Credit
  • Income-based Jobseeker’s Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Pension Credit
  • Working Tax Credits – see further down for full details
  • Child Tax Credits – See further down for full details

Eligibility for £650 payment

To get the first Cost of Living Payment of £326, you must have been entitled to a payment (or later found to be entitled to a payment) of either: Universal Credit for an assessment period that ended in the period April 26, 2022 to May 25, 2022

Income-based JSA, Income-related ESA, Income Support or Pension Credit for any day in the period April 26, 2022 to May 25, 2022 The DWP said it will update the guidance when the UK Government has announced the qualifying dates to get the second payment of £324.

If you have a joint claim with a partner, you will get one payment of £326 and one payment of £324 for your joint claim, if you’re entitled. You will not get a payment if you get New Style Employment and Support Allowance, Contributory Employment and Support Allowance or New Style Jobseeker’s Allowance, unless you get Universal Credit.

When you will be paid

DWP said: “Most of the first payments of £326 will be made between July 14, 2022 and the end of July 2022. We will update this guidance when payments have been made. You’ll get the second payment of £324 in autumn 2022, if you’re entitled.”

£650 payment if you get Tax Credits

You may get a payment of £650 paid in two lump sums of £326 and £324 if you have an award of any of the following:

  • Child Tax Credit
  • Working Tax Credit

Eligibility

To get the first Cost of Living Payment of £326, you must have received a payment, or an annual award of at least £26, of Tax Credits on any day in the period April 26, 2022 to May 25, 2022. The guidance will be updated when the UK Government has announced the qualifying dates to get the second payment of £324.

If you have a joint claim with a partner, you will get one payment of £326 and one payment of £324 for your joint claim, if you’re entitled. If you get both Child Tax Credit and Working Tax Credit, you will receive a Cost of Living Payment for Child Tax Credit only.

When you will be paid

If you only receive Tax Credits, you will get the first payment of £326 from autumn 2022 and the second payment of £324 from winter 2022 – if you’re entitled. If you get Tax Credits from HMRC and a low income benefit from DWP, you will get a Cost of Living Payment from DWP only, starting from July 14. If you also get a qualifying disability benefit, you may get an additional Disability Cost of Living Payment from DWP.

Who is not eligible for the £650 payment?

You will not get a payment if you get the following benefits, unless you also receive Universal Credit.

  • New Style Employment and Support Allowance
  • Contributory Employment and Support Allowance
  • New Style Jobseeker’s Allowance

£150 if you get certain disability benefits

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

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

Eligibility

You must have received a payment (or later receive a payment) of one of these qualifying benefits for May 25, 2022 to get the payment. If you get a qualifying disability benefit from the Ministry of Defence (MOD) and a qualifying disability benefit from DWP, you will get a Disability Cost of Living Payment from DWP only.

When you will get paid

Payments will be made from September 2022. If you also get a qualifying low income benefit or Tax Credits, you may get an additional Cost of Living Payment.

£300 one-off payment for people of State Pension age

All eligible pensioner households will get the one-off ‘Pensioner Cost of Living Payment’ added as a top-up to their annual Winter Fuel Payment in November/December.

Eligibility

People will be eligible for this payment if they are over State Pension age (aged 66 or above) between 19-25 September 2022 and in receipt of the Winter Fuel Payment The £300 is not taxable and will be paid on top of any other one-off support a pensioner household is entitled to, for example where they are on Pension Credit or receive disability benefits

The payment does not affect eligibility for other benefits

Who does not qualify for £300 payment?

There are certain circumstances where an individual above State Pension age does not qualify for the Winter Fuel Payment which can be found on GOV.UK, here

When you will get paid

Payments will be made over November and December.

£400 discount off energy bills

The UK Government will pay the £400 directly to energy suppliers who will deliver this support to households with a domestic electricity meter over six months from October. Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher – this will depend on whether they have a smart meter or not.

Who qualifies for the £400 energy bill grant:

  • Domestic energy users in Scotland, England and Wales – equivalent support will be delivered to people in Northern Ireland

Other key points about the payment:

  • The £400 does not need to be repaid
  • This support is on top of the £150 Council Tax rebate for households in bands A-D (and with a reduction in Scotland), which was announced in February, and which millions of households have already received

You can read detailed examples of how the additional support packages will affect different types of households on he GOV.UK website here.

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Written by: thehitnetwork

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