Cost of living payment: Government confirm exact date £300 boost will be paid to millions this autumn
Around eight million households qualify for the £300 cash boost - here’s the exact date it will land in bank accounts.
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The Government has confirmed the exact date millions of UK households will receive the next instalment of the £900 cost of living payment. The first instalment, worth £301, was rolled out to people on means-tested benefits between April 25 and May 17 earlier this year - and now the second payment is due over the coming weeks.
As the cost of living crisis continues to bite, the recent focus for many low-income households has been the exact date the next payment will land. And now it has been confirmed today (Wednesday, September 20) those eligible will receive the money in their bank accounts between October 31 and November 19.
People who are eligible for the payment who are claiming tax credits only, and therefore do not qualify for a payment from the Department for Work and Pensions (DWP), will get £300 from HM Revenue and Customs (HMRC) between November 10 and 19. The payments are tax-free, will not count towards the benefit cap and will not have any impact on existing benefit awards.
Chancellor Jeremy Hunt said: “Halving inflation and getting price rises under control is the best way to support households struggling with their bills. But it is also right that we are helping the most vulnerable in our society, and this latest cost of living payment is part of a package of support worth £3,300 per household on average over this year and last to help those struggling the most.”
Work and Pensions Secretary Mel Stride 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.
The DWP will pay more than seven million households and HMRC will follow with around 830,000 more, taking the total number of households eligible for the cost of living payment to around eight million. The cash boost forms part of a wider package of support for low-income and vulnerable households totalling £94bn.
Who is eligible for the cost of living payment?
You are eligible for the £900 cost of living payment if you are claiming the following benefits:
- Universal credit
- Income-based jobseeker’s allowance
- Income-related employment and support allowance
- Income support
- Pension credit
- Working tax credit
- Child tax credit
To be eligible for the latest cost of living payment from the DWP, you need to been entitled to a payment for a qualifying benefit between August 18 and September 17, or a payment for an assessment period, ending between these dates. For HMRC, you need to have received a payment of tax credits for any day between August 18 and September 17.
The £300 cost of livingpayment will be sent out automatically and directly to recipients, meaning those eligible do not need to apply, contact the Government or do anything to receive it. This includes tax credits-only customers, who will receive the payment from HMRC.
The payment reference for bank accounts will be the recipient’s national insurance (NI) number followed by “DWP COL” or “HMRC COLS”.
When will the cost of living payment be paid 2024/25?
The first cost of living payment was rolled out to people on means-tested benefits between April 25 and May 17 2023 in an instalment of £301. The cost of living payment schedule 2023/24 is as follows:
- £301 paid between 25 April 2023 and 17 May 2023 for most people on DWP benefits
- £301 paid between May 2 and 9 2023 for most people on tax credits and no other low income benefits
- £300 paid between October 31 and November 19 for most people
- £299 paid during spring 2024 for most people
Just like last year’s cost of living payments, the schedule is slightly different for people who qualify solely through the receipt of Tax Credits from the HMRC, rather than low-income benefits.
What other cost of living support is there?
The Government is issuing further support as well as the £900 cost of living payment to eligible people this year. This includes a payment worth £150 for people with disabilities and £300 for pensioner in 2023.
It means that some people will receive support of up to £1,350. If you claim any of the following, you should be eligible for the £150 disability payment:
- disability living allowance
- personal independence payment
- attendance allowance
- Scottish disability benefits
- Armed Forces independence payment
- constant attendance allowance
- war pension mobility supplement
The Government has said most of the people eligible for the £150 cost of living payment received the money automatically between June 20 and July 4. It added: “Your payment might come later, for example if you’re awarded a qualifying benefit at a later date or you change the account your benefit is paid into. You will still be paid the cost of living payment automatically.”
The DWP said it continues to encourage pensioners on low incomes to check their eligibility for Pension Credit. Due to Pension Credit backdating rules, those who are eligible could still qualify for both the second cost of livingpayment as well as the third payment due in spring 2024.