First 2023/24 cost of living payment dates announced

Millions of UK households will receive a £301 cost of living support payment from the government between 25th April and 17th May.

This is the first of three payments totalling up to £900 for those eligible and on means-tested benefits, such as Universal Credit or Pension Credit, in 2023/24. This follows the £650 Cost of Living Payment made to over eight million people in 2022.

There will also be further payments worth £150 for eligible disabled people and £300 for pensioners due later this year, meaning the most vulnerable can receive up to £1,350 in direct payments.

The £301 payment will be sent out automatically and directly to recipients by the Department for Work and Pensions (DWP), meaning those eligible do not need to apply or do anything to receive it. The payment reference for bank accounts will be DWP COLP, along with the claimant’s National Insurance number.

Mel Stride, Secretary of State for Work and Pensions, said: ‘These payments will give a financial boost to more than eight million households as we continue to wrap our arms around the most vulnerable, while the best way we can protect people from high costs is to halve inflation by the end of this year.

‘In the long-term, we know work is the best route out of poverty, which is why we recently announced additional Work Coach support to help more people find work or increase their hours. Anyone looking to boost their skills or progress their career should speak to their work coach to ensure they’re accessing all the support the DWP can provide.’

The full list of benefit recipients that qualify for the upcoming Cost of Living payment are those who receive:

•  Universal Credit;
• Income-based Jobseekers Allowance;
•  Income-related Employment and Support Allowance;
• Income Support;
• Working Tax Credit;
• Child Tax Credit;
• Pension Credit

The qualifying period for this payment is between 26th January and 25th February 2023.

To be eligible for the Cost of Living Payment, individuals need to have been entitled to a payment for one of these benefits between 26th January and 25th February 2023, or payment for an assessment period ending between these dates.

This has led to criticism after more than half a million Universal Credit claimants missed out on a cost of living payment last summer because, whilst claiming benefits, they did not receive an actual benefit payment during the relevant time period, rendering them ineligible for the cost of living payment.

Around 550,000 claimants missed out because they earned too much from work to receive a Universal Credit payment, as benefit payments under Universal Credit rise or fall to reflect people’s work income each month. Some of these will have been caught by a quirk in the system where two work payments, paid every four weeks, can fall in the same calendar month.

A further 6,600 claimants were not paid Universal Credit during the relevant time period due to rising numbers of benefit sanctions, which also rendered them ineligible for the cost of living payment.

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 shortly after DWP payments begin. HMRC will publish specific details of when payments will be made to these customers along with the bank account payment reference.

Eligible customers will not need to apply or contact the Government at any stage to receive the £301 Cost of Living Payment.

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