DWP £301 cost of living payments - are you eligible?

More than 300,000 families in Northern Ireland on means-tested benefits are set to benefit from this one-off payment in response to the cost of living crisis amid soaring levels of inflation said to be the result of the war in Ukraine and the fiscal aftershock of the pandemic.

The £301 cost of living payment will be made to eligible households receiving the following benefits: Universal Credit; Income-based Jobseekers Allowance; Income-related Employment and Support Allowance; Income Support; Pension Credit; Working Tax Credit - paid by HMRC if no other DWP means-tested benefit is also claimed; Child Tax Credit - paid by HMRC if no other DWP means-tested benefit is also claimed.

The £301 payments are made automatically, which means nobody needs to apply for the money.

Payments will appear on accounts as ‘DWP COLP’, along with the claimant’s National Insurance number.

This payment will be tax-free, will not count towards the benefit cap, will not have any impact on existing benefit awards and does not need to be paid back to the government.

Those who are only in receipt of Tax Credits will receive the money between May 2 and 9, directly from HM Revenue and Customs (HMRC).

However, there are some claimants who may not be eligible for the cost of living payments if their benefit award has been reduced to 'nil' during the qualifying period (January 26 – February 25, 2023).

Although some may still be able to receive the payment.

You could receive a 'nil award' if: you got more than one payment of earnings in your Universal Credit assessment period; your or your partner’s earnings went up or

your or your partner’s savings went up; you started getting another benefit; or you got a ‘sanction’ because you did not do something you agreed in your claimant commitment.

You will still be able to receive the cost of living payment despite a 'nil award' if: money was taken off your benefit for other reasons, such as payments of rent to your landlord or for money that you owe; or if you had a hardship payment because you got a sanction and could not pay for rent, heating, food or hygiene needs.

You will not get a payment if you are only getting: New Style ESA; Contributory ESA; New Style JSA; or Joint claims.

If you have a joint claim on the qualifying dates, a single payment of £301 will be sent using the same payment method.

You are eligible for the £301 cost of living payment if you were entitled to a payment, or later found to be entitled to a payment, of Universal Credit for the assessment period (January 26 – February 25, 2023).

Pension Credit and other income-related benefits

Guidance on GOV.UK explains that people on Income-based JSA, Income-based ESA, Income Support and Pension Credit will be due the £301 payment if they were entitled to a payment - or later found to be entitled to a payment - of those benefits for “any day in the period from January 26 through to February 25, 2023.”

New Pension Credit claims and £301 payment

The DWP is also encouraging low-income pensioners not already getting Pension Credit to check their eligibility, as they can still qualify for the £301 cost of living payment if they make an application for Pension Credit before May 19, 2023, which later turns out to be successful.

This is because Pension Credit is a retrospective benefit that can be backdated by up to three months, taking it to within the qualifying period (January 26 - February 25, 2023).

People can check their eligibility for Pension Credit using the online calculator on GOV.UK or by calling the Pension Credit helpline on 0800 99 1234.

People on Working Tax Credits or Child Tax Credits and a qualifying DWP benefit began receiving their payment from April 25 with payments ongoing until May 17, 2023.

Disability Cost of Living Payment

You may be entitled to a Disability Cost of Living Payment of £150 if you get any of the following benefits on a certain date: Attendance Allowance; Constant Attendance Allowance; Disability Living Allowance for adults; Disability Living Allowance for children; Personal Independence Payment; Armed Forces Independence Payment; or War Pension Mobility Supplement.

The qualifying date for the payment of people in these categories has not yet been announced.

Most people will be paid the £150 Disability Cost of Living Payment during summer 2023.

Support for the most vulnerable

UK Work and Pensions Secretary, Mel Stride has said: “These direct payments will help people right across the UK over this year and the start of the next, as we continue to provide consistent, targeted and substantial support for the most vulnerable.

“Our wider support package, including the Energy Price Guarantee, will ensure every household is being helped through this challenging period of high inflation, caused by Putin’s illegal war and the aftershocks of the pandemic.”

Secretary of State for Northern Ireland, Chris Heaton-Harris added: "This further cost of living support will continue to help those most in need across Northern Ireland. The Government is committed to protecting the most vulnerable in our society."

For more information click here.