Cost of living payments: what you need to know
Around 900,000 vulnerable households claiming tax credits received the first cost-of-living payment in early May, according to HM Revenue and Customs (HMRC).
The £301 payment was sent to eligible claimants between 2 and 9 May. It's the first of three payments, worth a total of £900, set to be rolled out to households on means-tested benefits. Two more instalments will be sent in the autumn and next spring. There will also be separate payments for people with disabilities and pensioners.
A total of 8.3 million cost-of-living payments have so far been made by the Department for Work and Pensions (DWP) and HMRC in 2023-24.
With inflation still in double digits at 10.1%, the money should go some way to helping people who are struggling to make ends meet. Here, Which? explains what the payments are, who they are for and how to ensure you don't miss out on receiving the cash.
What support is the government offering?
In his Autumn Statement, Chancellor Jeremy Hunt announced a new package of financial support to ease the squeeze during the ongoing cost of living crisis. The money, however, will only be available for the most vulnerable households. Find out if you are eligible, below.
Cost of living payments
The first of three cost of living payments, worth a total of £900, will be sent to means-tested benefits claimants between 25 April and 17 May.
Around eight million households will receive the first £301 instalment, with a second payment of £300 made in the autumn, and a third instalment of £299 sent out next spring.
To be eligible for the money, you must already be receiving one or more of the following:
- Universal credit
- Income-based jobseekers allowance
- Income-related employment and support allowance
- Income support
- Pension credit
- Working tax credit and child tax credit
You don't need to apply or contact anyone – if you're eligible, the payment will be transferred automatically into your bank account, separate to your benefits or tax credits.
The Department for Work and Pensions is also urging low-income pensioners not already getting pension credit to check their eligibility, as they can still qualify for the £301 grant if they make a successful backdated pension credit application by 19 May.
You can use the government's online pension credit calculator to check if you qualify and get an estimate of what you may receive.
There will also be a separate £150 payment made during the winter for more than six million people with disabilities, and an extra £300 for more than eight million pensioners, due in spring 2024.
- Find out more: pension credit explained
What if I don't receive the payment?
If you meet all the eligibility criteria but have not received the first £301 payment by 17 May, you should contact the DWP to make a claim.
The DWP says an online form will be available 'for a few weeks' from 18 May and will be updated to advise how to report any further missing payments.
The missing-payment form will become available again for future cost of living payments after the payment dates have passed.
Watch out for scam messages
Scammers were quick to target people with fake messages and calls following the government's first round of cost of living support last year. Anyone eligible for these new payments should once again be on high alert for fraudsters.
Scams last year included a text message asking you to claim or apply for the payment, as well as emails asking you to call a fake number to make a claim for the payment.
In January, the DWP issued a warning on social media: 'You do not need to apply for the payment. You do not need to call us. Payment to you is automatic. We will never ask for personal details by SMS or email.'
This echoes guidance on the government's official cost of living website, which says if you receive a suspicious text message or email, you should report it by forwarding it for free to 7726 or sending it to report@phishing.gov.uk.
- Find out more: how to spot a scam
Get further help with the cost of living
Experts from across Which? have compiled the latest news and advice that can help you navigate the cost of living crisis. Check out our free advice and podcasts to help ease the squeeze on household bills, grocery shopping and more.
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