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Cost of living payment in the United Kingdom 2023

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Cost of Living UK

Cost of Living UK

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Cost of living – An article on the 2023-2024 forecast.

Featured Image by vwalakte on Freepik

The UK’s cost of living has escalated significantly in recent years, and with expectations of further increases, numerous individuals are concerned about their ability to manage household expenses or make ends meet. While it may seem like there’s little assistance for those stretching each paycheque, you might qualify for additional support through a cost of living payment this year.

But what exactly is a cost-of-living payment, and how much might you be foregoing? This guide will delve into all the details you need to understand about the 2023 cost of living payment, including its definition, eligibility criteria, potential amounts you could receive, and the availability of further assistance.

2023/2024 COST OF LIVING PAYMENT NEWS 

cost of living

Image taken from commons library UK

Amidst the UK’s escalating cost-of-living crisis, numerous households and individuals in precarious situations are finding it difficult to cover their monthly expenses. The cost-of-living payment initiative has provided essential financial relief to many, offering a much-needed supplement to their budgets. As the crisis shows no sign of abating, the extension of this government aid into the 2023/24 period is welcome news.

Eligible recipients can anticipate the first payment from April 25th, 2023. In our latest update on the 2023 cost of living payment, we outline the criteria for eligibility and provide a tentative schedule for the disbursement of payments.

 WHO QUALIFIES FOR THE 2023 GOVERNMENT COST OF LIVING SUPPORT?

 Individuals receiving any of the following benefits or tax credits will be eligible for the cost of living assistance payments:

  • Child tax credit
  • Universal Credit
  • Working tax credit
  • Pension credit
  • Income support
  • Job seeker’s allowance or ‘JSA’ (Income based)
  • Income-related Employment and Support Allowance or ‘ESA’

To qualify for the government’s cost of living assistance, you must have been a recipient of benefits or tax credits during the specific qualifying period from January 26, 2023, to February 25, 2023. The support will be distributed through three separate payments, spanning from the present until Spring 2024, with the first payment being £301, the second £300, and the third £299.

The next installment of the government’s cost of living support is scheduled to start on April 25, 2023, continuing the previous year’s support initiative. The funds will be managed by local councils, who will oversee the disbursement to eligible individuals. There’s no need to file a claim if you qualify; the payment will be automatically deposited into your bank account.

Schedule 2023 – 2024

 The confirmed dates for the upcoming year’s cost of living payments are available, but at present, only the date for the initial payment is set. The subsequent payment dates will be announced later in the year.

  • The first cost of living payment – paid between 25th April – 17th May 2023
  • Second cost of living payment – expected Autumn 2023 (date TBC)
  • Third cost of living payment – expected Spring 2024 (date TBC)
  • £301 – First Cost of Living Payment – during Spring 2023
  • £150 – Disability Payment – during Summer 2023
  • £300 – Second Cost of Living Payment – during Autumn 2023
  • £300 – Pensioner Payment – during Winter 2023/4
  • £299 – Third Cost of Living Payment – during Spring 2024

 Three cost-of-living installments of £301, £300, and £299 are accessible for individuals who, on specified dates, are recipients of any of the following benefits or tax credits:

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

Eligible individuals who received a qualifying benefit between January 26, 2023, and February 25, 2023, will receive the first payment of £301 from the Department for Work and Pensions (DWP). These payments will be issued automatically by the DWP from April 25 to May 17, 2023.

For those who only claim tax credits, the first payment of £301 for the fiscal year 2023-2024 from Her Majesty’s Revenue and Customs (HMRC) will be issued if a tax credit was paid at any point during the same qualifying period—or if the claimant is subsequently found to have been entitled to a payment for that period.

Those who are entitled to the payment exclusively from HMRC, and not from DWP, will receive their funds shortly after the DWP begins its disbursement. The HMRC will announce the specific payment schedule for tax credit-only claimants at the earliest opportunity.

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OTHERS

In addition to the broad cost of living program, there are targeted payments for particular vulnerable populations and recipients of certain benefits.

Pensioner – During the winter of 2023, pensioners will be granted a £300 payment, which serves as an extension of the previous year’s winter fuel payment.

Universal credit –for the mentioned cost of living support, you must ensure that your Universal Credit payments were not reduced to zero during the assessment period.

Disability –In the summer of 2023, a one-time payment of £150 for disability cost of living support will be distributed to individuals who are beneficiaries of disability-related benefits, including Attendance Allowance, Disability Living Allowance, or the War Pension Mobility Supplement.

Each payment within this initiative is subject to its eligibility requirements; thus, receiving one payment does not necessarily secure eligibility for subsequent ones. Beneficiaries are not required to reach out to the Department for Work and Pensions (DWP) or Her Majesty’s Revenue and Customs (HMRC) to receive these cost-of-living payments, as they are processed automatically and deposited into the same bank account used for tax credits. HMRC will send out letters to their customers with more detailed information in the upcoming weeks, and updates will also be made available on the GOV.UK website.

Beware of scammers

Individuals qualified for a cost of living payment will receive this payment directly from the Department for Work and Pensions (DWP) or Her Majesty’s Revenue and Customs (HMRC), deposited into their regular benefits payment account. Keep an eye on your bank statements for the specific transaction identifiers that will denote these official payments.

  • HMRC COL for payments from HMRC
  • DWP COL for payments from DWP

Unfortunately, scams related to the cost of living payments are on the rise. Exercise caution with unexpected texts, emails, or WhatsApp messages that instruct you to apply or click a link to receive the payments. Be aware that the DWP will never request personal or banking details via phone or text message.

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