Published On: Thu, Jan 25th, 2024

DWP alert as £299 as Cost of Living Payment date nears – check if you’re eligible | Personal Finance | Finance

Millions of people will receive another instalment of the DWP’s Cost of Living Payment in just a matter of weeks.

The next instalment, which will be worth £299, is due to be distributed between February 6 and February 22 for most people.

This will mark the third and final payment totalling up to £900 for those eligible and on means-tested benefits, such as Universal Credit, Pension Credit, or Tax Credits, this fiscal year.

The payment will be sent automatically by the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC), so eligible people do not need to apply or take any action to receive it.

Around eight million people will be eligible to receive the payment – here are the rules.

Who is eligible for £299 Cost of Living Payment?

The full list of benefit recipients that qualify for the third Cost of Living Payment are those who are eligible and receive at least one of the following:

  • Income-based Jobseeker’s Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Working Tax Credit
  • Child Tax Credit

To be eligible, people need to have been entitled to a payment for a qualifying benefit between November 13, 2023, to December 12, 2023.

From HMRC, people need to have received a payment of Tax Credits for any day in the period between November 13, 2023, to December 12, 2023.

Those on DWP benefits other than Universal Credit who are entitled to less than 10 pence and meet all other qualifying criteria but who do not receive a benefit payment, will still receive a Cost of Living Payment.

The payment is tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

For joint Tax Credit claimants, where one claimant receives Working Tax Credit and the other claimant receives a Child Tax Credit, payments will be made into the same bank account as the Child Tax Credit.

If a household becomes retrospectively entitled to a Cost of Living payment or believes they are entitled but do not receive one, they can report this via GOV.UK from February 23.

The payment reference for bank accounts will be the recipient’s National Insurance Number followed by DWP COL. The HMRC payment reference will be HMRC COLS.

The DWP is also urging low-income pensioners not already getting Pension Credit to check their eligibility, as backdating rules mean they could still qualify for the cost-of-living payment in February.

Pension Credit can be backdated by up to three months if a person is found to be eligible, which means they could fall into the third Cost of Living Payment’s December qualifying period.

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