Cost of Living Payments

(asked on 18th October 2023) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether his Department has made an assessment of the potential merits of extending the upcoming Cost of Living payment eligibility cut off dates for people (a) who are on Universal Credit and in work and (b) whose incomes have fallen as a result of ill health past the eligibility dates.


Answered by
Mims Davies Portrait
Mims Davies
Parliamentary Under-Secretary (Department for Work and Pensions)
This question was answered on 23rd October 2023

The first round of Cost of Living Payments was made in 2022 to over 8 million households on Universal Credit, Pension Credit, and eligible legacy benefits. These means-tested Cost of Living Payments, totalling £650, were made in two payments of £326 from July 2022 and £324 in November 2022. Around 6 million people received £150 Disability Cost of Living Payment, and over 11 million pensioners received up to £300 on top of their Winter Fuel Payment.

The second round of means-tested Cost of Living Payments, with a total amount of £900, are to be made in three payments. The first Cost of Living Payment of £301 was made between 25 April and 17 May 2023. The second Cost of Living Payment of £300 will be made between 31 October and 19 November 2023. The final Payment of £299 will be paid by Spring 2024.

To be eligible to receive a Cost of Living Payment, the individual must be entitled to payment of a qualifying means-tested benefit during the qualifying period, or a payment for an assessment period ending within the qualifying period.

The qualifying means-tested benefits include:

  • Universal Credit (UC)
  • Income-based Jobseeker’s Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Income Support
  • Pension Credit
  • Working Tax Credit (WTC)
  • Child Tax Credit (CTC)

We have kept the eligibility rules for the Cost of Living Payments as simple as possible to deliver them promptly and accurately.

The Cost of Living Payment for eligible means-tested benefit claimants will be delivered in three separate payments over 2023/2024.

This reduces the chance of someone missing out altogether, as those who do not qualify for one of the payments due to their changing circumstances may qualify for another one of the payments.

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