Six key rules for Britons to note before £301 cost of living payment is issued
The first cost of living payments will start to arrive for eligible Britons this month.
Cost of living payments will be issued in the coming months to offer support to millions of benefit claimants. The payments will come in instalments, with the first one due between April 25 and May 17, and is set to be worth £301.
Two more payments worth £300 and £299 will also be handed to eligible Britons at a later date.
But what are the key rules to bear in mind when it comes to the first instalment?
Britons have to be in receipt of certain benefits
Not everyone will be eligible for a cost of living payment, and this one is intended for individuals on means-tested benefits.
People should receive the full £900 sum if they are in receipt of:
- Pension Credit
- Universal Credit
- Tax credits
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA).
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Britons have to be eligible during the qualifying period
One of these qualifying benefits must be claimed by the individual within the qualifying period laid out by the Department for Work and Pensions (DWP).
For the first instalment of £301, people must have been entitled, or later found to have been entitled, to one of these benefits between January 26 and February 25.
It is not yet clear what the qualifying dates are for the next two instalments.
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Britons do not have to claim the cash
Individuals will not have to take any action to receive the cost of living payments.
This is because if they are eligible they should find the sum is paid out to them automatically.
Cost of living payments could be issued later
If a person is awarded a qualifying benefit later down the line, their payment could be issued later.
Similarly, if a claimant changes the account their benefits are paid into, their payment could be late.
Britons are urged to make sure the DWP has their up-to-date details, as payments could be sent to an incorrect account otherwise, creating a delay.
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HMRC benefit claimants won’t be paid at the same time as DWP claimants
There are different rules when it comes to Britons who only get Child Tax Credits or Working Tax Credits.
This is because these benefits are overseen by HM Revenue and Customs (HMRC), rather than the DWP.
Cost of living payments for HMRC claimants will be paid out “shortly after DWP payments begin”, with no specific dates yet announced.
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Backdated benefits claims could make someone eligible
Certain individuals could find they are eligible for the cost of living payment based on a backdated benefits claim.
For example, if a person makes a claim for Pension Credit before May 19, they are likely to be eligible for the first cost of living payment.
This is because claims for Pension Credit can be backdated for up to three months.