Cost of Living

They will apply to people on means-tested benefits including:

• Universal Credit
• Pension Credit
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Income Support
• Tax credits: Child Tax Credit and Working Tax Credit. 

1. The first payment of £301 will be made between 25 April and 17 May with the second payment of £300 due to be made in the Autumn 2023, and the third payment of £299 due to be made in the Spring of 2024. 
    
2. The Cost of Living Payment will be issued automatically, meaning those eligible do not need to contact DWP/HMRC or apply for the payment.
    
3. It will be paid separately to benefit payments.
    
4. The Cost of Living Payment will appear in accounts with the account holder’s National Insurance number and DWP COLP. 
    
5. Those who are eligible for the £301 Cost of Living Payment solely through tax credits and are not eligible through DWP means-tested benefits, will be paid by HMRC between 2 and 9 May 2023.
    
6. For tax credit-only customers, the reference will appear in accounts as HMRC COLS - referencing Cost of Living Support.
    
7. Exact payment dates and qualifying periods for eligibility will be announced in due course but are designed to ensure a consistent support offer throughout the year. Payment windows will be broadly as outlined in the table below.
    
8. An extra £150 payment to people on qualifying disability benefits will be available, and guidance will be updated with the qualifying date for the payment when it has been announced.
    
9. There will also be an extra £300 for pensioner households paid as an increase to their winter fuel payment to be paid in Winter.
    
10. The Department for Work and Pensions 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 a successful backdated Pension Credit application by 19 May.

To be eligible for the first payment:

• Families must have been entitled to a payment (or later found to be entitled to a payment) of either: 
  • Universal Credit for an assessment period that ended in the period 26 January to 25 February
  • Income based JSA, income related ESA, Income Support or Pension Credit for any day in the period 26 January 2023 to 25 February 2023. 
     
• For tax credit-only customers, they must have received a payment of tax credits any day in the period 26 January to 25 February 2023. 

For more information, go to the Cost of Living Payment page on the government website – www.gov.uk