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The UK Government has started paying the first of three additional benefit payments today.
More than eight million eligible households will receive £301 between Tuesday April 25 and Wednesday May 17. HMRC will make payments to those claiming tax credit-only between Tuesday May 2 and Tuesday May 9.
This is the first of three new cost-of-living payments adding up to £900 in 2023/24 – although some people will receive up to £1,350.
The Department for Work and Pensions (DWP) will send payments automatically and directly to recipients’ bank accounts, with a reference of their National Insurance number followed by ‘DWP COL’.
Eligible people will be on means-tested benefits, including Universal Credit, Pension Credit and tax credits, totalling £900 through 2023/24.
These will be accompanied by a £150 payment for people on eligible disability benefits this summer, and a £300 payment on top of Winter Fuel Payments for pensioners at the end of 2023.
Those entitled do not need to do apply for the payment or do anything to receive it. Payments made during this window will be staggered over the next couple of weeks meaning not everyone entitled to receive a payment will receive it today.
Mel Stride, Secretary of State for Work and Pensions in the UK Government, said: “This latest additional payment will be welcomed by millions of families – as will further payments due over the next year.
“We have continually supported those most vulnerable to rising costs, including through record benefits and national living wage increases as well as these exceptional Cost of Living Payments responding to the global pressures we are facing.
“We will also continue to deliver on our five priorities, including halving inflation, as this will ease pressure on households currently struggling with household bills and rising prices.”
The UK Government’s Welsh Secretary David TC Davies said: “Over 430,000 people in Wales will be receiving £301 directly from the UK Government from today to help them with the cost-of-living. This is the first of three payments and is just one part of a package of measures which will support those families and individuals in Wales who need it most.
“We remain focused on delivering on our priorities to halve inflation, and that will help everyone in Wales. But we know that vulnerable households need financial support right now, and we are doing all we can to help.”
Who is eligible?
People will be eligible for the Cost of Living Payment if they have been entitled to a payment for one of seven benefits between January 26 and February 25, 2023. The eligible benefits are:
- Universal Credit
- Pension Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
Once the majority of those who are entitled to a payment by DWP have been paid, HM Revenue and Customs (HMRC) will make payments of £301 between Tuesday May 2 and Tuesday May 9 to one million eligible families receiving tax credits only, with the banking reference ‘HMRC COLS’.
The latest payment follows on from the £650 Cost of Living Payment delivered by the Government in 2022, along with another £150 disability payment and a £300 pensioner payment.
While payments are made automatically, people must be receiving one of the eligible qualifying benefits during the specified period to qualify. Those who wish to check their entitlement to benefits should use a benefits calculator on Gov.uk to get a better idea of what they could receive.
Low-income pensioners should check their eligibility for Pension Credit, as they may still be able to receive the £301 Cost of Living Payment, and subsequent payments, if they make a successful backdated application by May 19, 2023.
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