Millions of households across the UK will start to receive a £299 Cost of Living Payment from today until 22 February as part of the Government’s £104 billion Cost of Living support package.
The payment will be sent out automatically and recipients do not need to apply to receive it. This includes tax credits-only customers who will receive the payment from HMRC between 16 and 22 February.
It is the third of up to three payments totalling up to £900 paid to eligible households on means-tested benefits over 2023/24 and comes as part of a support package that has helped millions of households since autumn 2021.
Mel Stride, Secretary of State for Work and Pensions, said:
"The economy has turned a corner, and with inflation falling we are providing millions of the most vulnerable households with another significant cash boost.
"Our fair approach to welfare is underpinned by a belief that the best way to secure long-term financial security is through work.
"This is why we have cut taxes for over 27 million working people and have launched a £2.5 billion Back to Work Plan to help thousands more people off benefits and into jobs."
Chancellor of the Exchequer Jeremy Hunt added:
"Our decisive action helped to more than halve inflation last year while building the foundations for long-term growth through sensible tax cuts, which will help people’s money go further.
"But the legacy of Covid and the ongoing Ukraine war has meant the last few years have been tough for many, which is why we’ve provided one of the largest support schemes in Europe worth £3,700 for the average household."
The Government says it will continue to "support vulnerable people with the Cost of Living from April this year" by:
• Uprating benefits in line with inflation by 6.7%.
• Maintaining the triple lock and increasing the state pension by 8.5% - after the largest ever cash increase last year for around 12 million pensioners.
• Increasing the National Living Wage by its largest ever cash amount in April– worth over £1,800 to the gross annual earnings of a full-time worker – and lowered the age threshold for eligibility by 2 years.
The changes coming into force in April are part of the Government’s £104 billion Cost of Living package which the Government says are worth an average £3,700 per household, including the £900 in direct Cost of Living Payments for those on means-tested benefits.
ELIGIBILITY
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:
Universal Credit;
Income-based Jobseekers Allowance;
Income-related Employment and Support Allowance;
Income Support;
Working Tax Credit;
Child Tax Credit;
Pension Credit
The payment reference for bank accounts will be the recipient’s National Insurance Number followed by DWP COL or HMRC COLS.
To be eligible for the Cost of Living Payment from DWP, you need to have been entitled to a payment for a qualifying benefit between 13 November and 12 December last year, or payment for an assessment period, ending between these dates. From HMRC, you need to have received a payment of tax credits for any day in the period between 13 November and 12 December.
If a household becomes retrospectively entitled to a Cost of Living Payment, or believe they are entitled but do not receive one, they can report this via gov.uk from the 23 February.