DWP £900 Cost of Living Payment - Are You Eligible?
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The £900 Cost of Living Payment from the Department for Work and Pensions (DWP) will help people cope with rising bills during the cost of living crisis. This is split out as three separate payments - £301, £300 (in Autumn 2023) and £299 (in Spring 2024).
From April 2023, over eight million people in the UK who get certain means-tested benefits began receiving the first instalment.
Here, we’ve explained what this payment is, whether you’re eligible, when it’ll be paid and how to apply. We’ve also explained the other cost of living payments you could be eligible for.
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In this article:
- What is the £900 Cost of Living payment?
- Who is eligible for this Cost of Living Payment?
- Who isn’t eligible?
- When will this be paid?
- How to apply
- How to report a missing payment
- What other support is available?
What is the £900 Cost of Living Payment?
The £900 Cost of Living Payment is a tax-free amount to help people afford ever-increasing energy bills and other expenses such as food and rent during the cost of living crisis.
This £900 won’t count towards your benefit cap and also won’t have any impact on existing benefit awards.
The £900 is split across three payments. The first of these - worth £301 - was made between April and May. The second payment - worth £300 - is scheduled for Autumn 2023, while the third and final payment - worth £299 - is scheduled for Spring 2024.
Many older adults are especially struggling, and this £900 payment aims to provide some much-needed financial assistance. Samuel Lathey - the CEO of financial wellbeing employee benefit solution Bippit - spoke about the impact this payment will have:
“This payment will be welcome news for people who have struggled during the cost-of-living crisis, which has come hot on the heels of the global pandemic. Like one-off payments from employers during this difficult time, this support will relieve pressure on hard-up individuals and families as the cost of basic goods and services such as food and energy continue to rise.
Across society, we need to relieve the burden of money stigma on individuals, especially right now when more people than ever would benefit from reaching out. Failure to seek help in times of crisis or stress can make things worse and increase the time it takes for any interventions to make a difference.
We welcome this continued support for individuals and call on the government to invest further in early financial education. This will help promote better money management skills across our society, help more people feel confident when talking about money, and ensure that more of us seek assistance when necessary.”
Who Is Eligible For the £900 Cost of Living Payment?
If you receive any of the following means-tested benefits during the qualifying periods, you could be eligible for the three Cost of Living payments worth £301, £300 and £299 (£900 in total):
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Universal Credit
- Working Tax Credit
- Child Tax Credit
£301 Cost of Living Payment
You would have received the £301 payment if you were getting any of the above benefits or tax credits between the 26th of January and the 25th of February 2023.
You would have also received the payment if you were later found out to be eligible during these dates.
£300 and £299 Cost of Living payments
The exact dates for the £300 and £299 payments are yet to be announced. The £300 Cost of Living Payment will be made in Autumn 2023, while the £299 payment will be paid in Spring 2024.
Just like with the £301 payment, if you were receiving any of the above benefits between the 26th of January and the 25th of February 2023, you’ll be eligible to receive these two payments.
If you began claiming any of the above benefits beyond the 25th of February, you may still be eligible for the second or third payment.
Low-income pensioners (those above the State Pension age) should check their eligibility for these cost-of-living payments as well.
Who Isn’t Eligible For the £900 Cost of Living Payment?
If the benefit(s) you received during the qualifying period were reduced to £0, you likely wouldn’t be eligible for the Cost of Living Payment. This is known as a ‘nil award’.
Your benefit may have been reduced to £0 because:
- You received multiple payments of earnings during your Universal Credit assessment period
- Your or your partner’s earnings or savings increased
- You began receiving another benefit
- You were ‘sanctioned’ because of not doing something you agreed to in your claimant commitment
If this happens, you could still be eligible for a Cost of Living Payment, provided one of the following applies:
- Money was taken off your benefit for a different reason, such as to pay back any money you owe, or for rent payments to your landlord
- You had a hardship payment (this is a loan if your Universal Credit was cut short due to a sanction or penalty)
When Will This Be Paid?
If eligible, you’ll receive the Cost of Living Payment on the following dates:
£301 - Between the 25th of April and the 17th of May 2023 if you’re receiving DWP benefits, or between the 2nd and 9th of May 2023 if you’re receiving tax credits and no other low-income benefits
£300 - During Autumn 2023
£299 - During Spring 2024
The exact payment dates for the £300 and £299 payments will be confirmed nearer the time.
These payments made from the Department for Work and Pensions (DWP) will show in your bank account as “DWP COLP”, followed by your National Insurance (NI) number.
How To Apply For the £900 Cost of Living Payment
You don’t need to apply for any of the three Cost of Living Payments. Instead, the Department for Work and Pensions (DWP) will get in touch, telling you how much you’re due to receive and when these payments will be made.
How To Report a Missing Payment
Depending on what benefits you claim, you should have received the £301 Cost of Living Payment between the 25th of April and the 17th of May 2023, or between the 2nd and 9th of May 2023.
If you haven’t received a cost of living payment and you think you should have done, you can report a missing payment through the Department for Work and Pensions (DWP) ‘Report a missing cost of living payment’ portal.
What Other Support Is Available?
Pensioner Cost of Living Payment
You’ll be eligible for the Pensioner Cost of Living Payment if you’re also entitled to a Winter Fuel Payment for the Winter of 2023 to 2024.
You’re eligible for the Winter Fuel Payment if you were born on or before the 25th of September 1956 (making you above the State Pension age).
As a result of being eligible for this payment, you’ll receive an extra £150 to £300 from November 2023. Exactly how much you receive for the Pensioner Cost of Living Payment and Winter Fuel Payment depends on your age and personal circumstances during the qualifying dates.
If eligible, you’ll be sent a letter in October or November, letting you know how much you’re due to receive.
Disability Cost of Living Payment
If you receive any of the following benefits, you could also be entitled to a £150 Disability Cost of Living Payment:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment (PIP)
- Adult Disability Payment or Child Disability Payment (in Scotland)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
To be eligible, you’ll need to have received a payment (or later receive one) for 1st April 2023.
If eligible, you’ll be paid automatically between the 20th of June and the 4th of July 2023. There’s no need to apply.
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Frequently Asked Questions
Do PIP claimants get the £900 Cost of Living Payment?
To be eligible for the £900 Cost of Living payment, you’ll need to claim a means-tested benefit such as Universal Credit or Pension Credit. Disability benefits such as Personal Independence Payment (PIP) or Attendance Allowance aren’t means-tested, so they don’t make you eligible for these payments.
Why didn’t I get the Cost of Living Payment?
You may not have received a cost of living payment due to the account your benefits or tax credits are paid into being changed. In this case, the payment will still be made automatically, but it may arrive slightly later.
If you haven’t received your £301 Cost of Living Payment after the final date and you believe you were eligible, you should contact the Department for Work and Pensions.
What dates will the Cost of Living Payments be paid?
If you’re eligible for the £900 Cost of Living Payments, these will be made on the following dates:
- £301 between the 25th of April and the 17th of May 2023 for people on DWP benefits, or between the 2nd and the 9th of May 2023 for people on tax credits and no other low-income benefits
- £300 during Autumn 2023 (for most people)
- £299 during Spring 2024 (for most people)
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Written by our team of experts and designed to help families fund later life care in England.