Exact date £301 cost of living payment will be paid direct to bank accounts within weeks – will you get the cash?
MILLIONS of households will receive £301 in free cash from April, the government has said.
The Department for Work and Pensions has now confirmed the dates when the first instalment of the £900 cost of living payment will be made.
Millions of households on certain benefits, including Universal Credit, will receive the £301 directly into their bank accounts between April 25 and May 17.
Those eligible for the tax-free payment won’t have to do anything as it will be made automatically.
The full list of benefits that qualify people for the payment is:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension credit
If you were receiving any of the above benefits between January 26 and February 25 this year you will receive the £301 payment.
If you were later found to be entitled to any of the above benefits between January 26 and February 25 you will be eligible for the payment too.
The DWP said those on tax credits only will receive their payment from HMRC after the DWP payments begin.
But the government department did not give a specific date for when these payments will be made.
For those receiving the £301 payment from the DWP, it will show in your bank account as “DWP COLP” along with your National Insurance (NI) number.
For example, if your NI number is JT 83 42 97B your payment will show up as “DWP COLP JT 83 42 97B” on your statement.
The £301 payment is the first out of three that will be made – the remaining two, worth £300 and £299 will be made in autumn and spring 2024 respectively.
The over eight million households in line for the payments will receive £900 in total.
It follows the £650 cost of living payment made to over eight million people in 2022.
Mel Stride, secretary of state for Work and Pensions, said: “These payments will give a financial boost to more than eight million households as we continue to wrap our arms around the most vulnerable, while the best way we can protect people from high costs is to halve inflation by the end of this year.”
Chancellor Jeremy Hunt added: “I know that times are tough, which is why a key focus of the Spring Budget was supporting people with the cost of living and helping people into well-paid work.”
The DWP said low-income pensioners not already receiving pension credit should check their eligibility for the benefit.
Successful backdated pension credit claims made by May 19 will qualify for the £301 cost of living payment.
What other help is coming?
Millions of people with disabilities and pensioners will receive cost of living payments worth up to £300 later this year and into 2024 too.
Over six million people will receive a £150 disability cost of living payment this summer.
You may be entitled to the payment if you receive any of the following benefits:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
Millions of pensioners will receive a £150 or £300 cost of living payment from November this year too.
You will be eligible for the payment if you are entitled to a Winter Fuel Payment for winter 2023/24.
Effectively, the cost of living payment will top up your Winter Fuel Payment.
Eligible households will be sent a letter in October or November telling them how much their total payment is.
In some circumstances, you might be eligible for all three cost of living payments.
That means you will get £1,350 free cash from the government.
Beyond the cost of living payments, extra help is coming via the Household Support Fund, which has been extended until March 31, 2024.
The fund is a central pot of money from government that is shared between local councils in England.
They then decide who to distribute the money to, and how to.
It can come in the form of a voucher, or a direct cash payment into your bank account.
In most cases, the support is offered to those on a low income or certain benefits.
You should check with your local council if you are eligible for any support.
If you don’t know what council area you fall under, you can use the government’s council locator on its website.
Just type “find my local council” into Google and it should be the first link to click.