The second cost of living payment from the DWP is due in November 2022. However, there has been a lot of speculation from the media and online about the exact dates, which has caused a lot of confusion for many disabled people. The BuDS Cost of Living project team have worked through the data to get a clear picture of what is happening. Read on for more.
Low Income Benefit and Tax Credit Recipients
This information applies to people receiving:
- Universal Credit (including nil awards)
- Income based Jobseekers Allowance (JSA)
- Income based Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
To be eligible for the second cost of living payment, you must have been receiving one of the above benefits or credits between 26 August 2022 and 25 September 2022. This applies regardless of whether you received the first cost of living payment earlier this year. You do not need to do anything to receive this payment, and any requests are to be considered scams. More on this below.
Universal Credit Recipients
If you are eligible under the above criteria, you will receive a one-off payment of £324 between 8 November and 23 November 2022. This payment will be made separately from your benefit, and is entirely separate from the money you receive in your benefits.
Universal Credit ‘Nil Award’ Recipients
If you receive a nil award of Universal Credit, you will NOT be eligible for a cost of living payment this winter, even if you meet the above criteria. A nil award is when your earnings reduce your Universal Credit payment to £0. If you have money taken off you for other purposes (such as rent or debt repayments), and you still have a nil award, you may be eligible for the cost of living payment. Unfortunately, the Government does not clarify under which conditions this applies.
Income-based Benefit Recipients
If you are eligible under the above criteria, you will receive a one-off payment of £324 between 8 November and 23 November 2022. This payment will be made separately from your benefit, and is entirely separate from the money you receive in your benefits.
Contribution-based Benefit Recipients
If you receive contribution based JSA or ESA, you will NOT be eligible for cost of living payment this winter.
Pension Credit Recipients
If you are eligible under the above criteria, you will receive a one-off payment of £324 between 8 November and 23 November 2022. This payment will be made separately from your benefit, and is entirely separate from the money you receive in your benefits.
Tax Credit Recipients
If you received tax credits for the tax year 2022-23, or gained an annual award of £26 for the 2022-23 tax year, between 26 August and 25 September, you are eligible for the second cost of living payment. This will value £324, and be paid between 23 November and 30 November.
If you receive both Child Tax Credit and Working Tax Credit, you will receive a cost of living payment for Child Tax Credit only. This will be paid by HMRC separately from both of these credits.
If you get tax credits from HMRC and a low-income benefit from DWP, such as ESA, JSA, or UC, you will get a Cost of Living Payment from the DWP only. This means that your eligibility is assessed based on the low-income benefit you receive, which is explained above.
Joint Claimants
If you had a joint claim between 26 August and 25 September 2022, and you meet the above eligibility criteria, you will receive a single payment of £324 between 8 November and 23 November.
Disability Cost of Living Payment
This information applies to people receiving:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
To be eligible for the second cost of living payment, you must have received a payment (or later receive a payment) of one of these qualifying benefits for 25 May 2022. If you receive one of the above benefits from the Ministry of Defence (MOD) and another of the above benefits from the DWP, you will get a disability cost of living payment from the DWP only.
This payment is valued at £150, and will be a one-off payment made automatically from 20 September 2022. You do not need to do anything to receive this payment, and any requests are to be considered scams. More on this below. It is entirely separate from your benefits.
If you receive a disability benefit from the DWP, you will be paid before people who receive a benefit from the MoD.
Most people will receive their payments by early October, but some people may not have yet received it. If you have already received the payment, you do not need to take any further action. If you have not already received the payment, it should arrive in the next few weeks.
Pensioner Cost of Living Payment
This payment is available to anyone receiving winter fuel credit. If this applies, you will receive an additional sum on top of your normal payment from November 2022. You can receive this alongside other cost of living payments from your tax credits or benefits.
The amount you will receive is different depending on your circumstances at the time of your winter fuel credit payment. The full breakdown of this is available here.
Beware of Scams
All the payments described above will be paid automatically, and you do not need to do anything. This means you do not need to contact DWP or HMRC, or send anyone any personal information including bank account details. There are many scams going around which ask you to click a link to apply for the winter cost of living payment. It is essential that you do NOT click any links or respond to any requests that you may receive, regardless of who they claim to come from. If you have any concerns, contact us and we will help you.
More Information
To see more articles from our Fair4All Services team, click here: https://buds.org.uk/category/our-work/fair4all-services/
To find out more about the cost of living payments, click here: https://www.gov.uk/guidance/cost-of-living-payment
We Are Here To Help!
BuDS can help you by answering questions, providing information, helping you find practical support or help in a crisis or being a friendly voice if you’re lonely or isolated. If you’d like any help or support from us, message us through social media, e-mail buds-support@buds.org.uk or leave us a voicemail on 01494 211179. We’ll do our very best to help you.