Millions of households across the UK will receive another cost of living payment within weeks.
The Department for Work and Pensions (DWP) will distribute the £299 instalment to eligible households between February 6 and February 22.
This will make up the final payment of the three instalments totalling up to £900 for those eligible and on means-tested benefits, such as Universal Credit, Pension Credit, or Tax Credits, this fiscal year.
However, those who just receive Tax Credits, such as Child Tax Credits or Working Tax Credits, can expect to be paid on a slightly later date by HMRC.
This will fall between February 16 and February 22 for most people, and will also be worth £299.
The 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.
The payment reference for bank accounts will be the person’s National Insurance (NI) Number followed by DWP COL or HMRC COLS.
Who is eligible for the cost of living payment?
The full list of benefit recipients that qualify for the third cost of living payment are those who are eligible for 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 need to have been entitled to a payment for a qualifying benefit between November 13, 2023, and December 12, 2023, or payment for an assessment period, ending between these dates.
From HMRC, people need to have received a payment of Tax Credits for any day in the period between November 13, 2023, and December 12, 2023.
These payments are 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 a Working Tax Credit and the other receives a Child Tax Credit, payments will be made into the same bank account as the Child Tax Credit.
When will you not be eligible for a cost of living payment?
DWP benefit recipients will not be eligible for the Cost of Living Payment if their benefit is reduced to £0 for the qualifying period. This is sometimes referred to as a ‘nil award’.
However, if one of the following applies, they may still be eligible:
- Money was taken off their benefit for other reasons, such as payments of rent to their landlord or for money that they owe
- They had a hardship payment because they could not pay for rent, heating, food or hygiene needs.
Tax Credit recipients will not be considered eligible if their Tax Credit entitlement for the tax year is below £26.
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.
