DWP outlines why Employment and Support Allowance claimants won’t get £650 payment next month

The new style Employment and Support Allowance (ESA) is designed to support people who have a disability or health condition that affects how much they can work. However, it has been reported that people claiming in the new style benefit will not receive the Government’s £650 Cost of Living payment next month.

Last week, the Department for Work and Pensions (DWP) confirmed that more than eight million low-income households across the UK will receive a cash payment of £326 from July 14 to ease the rising cost of living pressures, with a further payment of £324 due to land in bank accounts in the autumn. According to Daily Record, the DWP has now clarified why people in the ESA support group will not be eligible for the Cost of Living Payment.

Labour MP, Alex Sobel, asked the Secretary of State for Work and Pensions, Dr Therese Coffey: “What basis her Department made the decision to exclude people in the support group for New Style Employment and Support Allowance from the £650 cost of living payment?”

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In a written response on Friday, June 17, DWP Minister David Rutley explained: “The [UK] Government is committed to managing the public finances in a responsible way by targeting the £650 Cost of Living Payment support at the eight million low income, means-tested households where it is most needed.” He clarified: “Contributory based Employment and Support Allowance is not a means-tested benefit.”

Eligibility for £650 Cost of Living Payment

Disabled people also receiving one of the means-tested benefits below will receive the £650 payment too:

• Universal Credit
• Income-based Jobseekers Allowance
• Income-related Employment and Support Allowance
• Income Support
• Working Tax Credit
• Child Tax Credit
• Pension Credit

If you receive a DWP means-tested benefit and Tax Credits, DWP will pay the £650 in two parts as outlined above (£326 from July 14).

If you only receive Tax Credits, HM Revenue and Customs (HMRC) will pay you in two installments – once in the autumn and another in the winter. No specific dates have been released yet.

Full details of all Cost of Living Payments can be found on the GOV.UK website here.

Mr Rutley highlighted a £150 one-off Cost of Living Payment which is scheduled to be made in September to six million disabled people across the country who are in receipt of a non-means tested, qualifying benefit.

£150 Cost of Living Payment qualifying benefits

The £150 ‘Disability Cost of Living Payment’ will be paid to people receiving these benefits:

• Disability Living Allowance (DLA)
• Personal Independence Payment (PIP)
• Attendance Allowance
• Adult Disability Payment (Scotland only)
• Child Disability Payment (Scotland only)
• Armed Forces Independence Payment
• Constant Attendance Allowance
• War Pension Mobility Supplement

You can read the full written response on GOV.UK, here.