The Department for Work and Pensions (DWP) has said that it “recognises that some people will flow on and off benefits” which will make them ineligible for the new £900 means-tested cost of living payment due next year. This will mainly affect those in work claiming Universal Credit who are paid every four weeks.
While the qualifying dates have still to be determined for the next payment, DWP has confirmed that the £900 will be made in two instalments, similar to this year’s £650 payment, to “reduce the chance of someone missing out completely” on the additional financial support. This is because people in work claiming Universal Credit will need to receive a benefit payment for at least one penny during the qualifying period to be entitled to either part of the £900 payment.
The new details emerged in response to a query from Alba MP Neale Hanvey, who asked DwP if it would review the eligibility criteria for the cost of living payments” to ensure that Universal Credit recipients who are paid every four weeks are not penalised”.
In a written response earlier this week, DWP Minister, Mims Davies MP, said: “In determining eligibility for the 2022/23 Cost of Living Payments, the eligibility periods were chosen to reflect the nature of the qualifying benefits and have remained simple to ensure these payments can be made to those who qualify quickly and at scale to support millions of people on low incomes.
“We recognise that some people will flow on and off benefits, and our policy reflects that. The 2022/23 Cost of Living Payment is being made in two payments to reduce the chance of someone missing out completely.”
Backdated £650 cost of living payments
Last week, Ms Davies also explained that people determined to have a Universal Credit nil award during the qualifying assessment period could be eligible for a 2022/23 cost of living payment retrospectively if a sanction is successfully appealed, or if they are awarded a Hardship payment in the qualifying period.
Ms Davies explained: “Some 98.9% of sanctions are for failing to attend a mandatory appointment at a Jobcentre, and can often be resolved quickly by claimants getting in touch with the Jobcentre and attending their next appointment.
“Hardship payments are available as a safeguard to claimants who demonstrate that they cannot meet their immediate and most essential needs - including accommodation, heating, food and hygiene - as a result of their sanction.”
£900 cost of living payment 2023/24 qualifying benefits
The qualifying period for the £900 payment has still to be announced, but eligible means-tested benefits are listed below.
These include:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
As before, people receiving Tax Credits-only will be paid separately by HM Revenue and Customs (HMRC). Anyone receiving Tax Credits along with a qualifying benefit from DWP will be paid by DWP only.
This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
