Millions of households across the UK will receive a £300 cost of living payment next month to help with rising costs, and the eligibility rules have now been announced.
This will be the second of three payments totalling up to £900 for those eligible and on means-tested benefits, such as Universal Credit, Pension Credit, or Tax Credits.
Mel Stride, secretary of state for work and pensions, said: “The best way we can boost bank balances is by bearing down on inflation, but as we get there, we are ensuring the most vulnerable households are cushioned from high prices with a further cost of living payment.
“Alongside this, thousands of Work Coaches across the country are helping find work, increase their hours and boost their skills. I encourage anyone who wants to progress their career and strengthen their finances to visit their local Jobcentre to find out what help is available.”
The £300 cost of living payment will be sent out automatically and directly to recipients, meaning those eligible do not need to apply, contact the Government, or take any action to receive it.
Who is eligible for the cost of living payment?
The full list of benefit recipients that qualify for the second cost of living payment are those who are eligible and receive at least one of the following:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit.
To be eligible, people must have been entitled to a payment for a qualifying benefit between August 18, 2023, and September 17, 2023, or payment for an assessment period, ending between these dates.
From HMRC, people will need to have received a payment of tax credits for any day in the period between August 18, 2023, and September 17, 2023.
The payment is tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
The payment reference for bank accounts will be the recipient’s National Insurance number followed by DWP COL or HMRC COLS.
The DWP expects to pay over seven million households and HMRC will follow with around 830,000 more, bringing the total number of households eligible for around eight million.
Eligible pensioner households will also receive a further £300 payment later this year as an addition to the Winter Fuel Payment.
Payment windows and eligibility criteria for the third cost of living payment will be announced in due course, but Britons entitled to the sum can expect to see it in spring 2014.