A warning has been issued to more than one million people who may be expecting to receive a £900 package of cost of living payments this year.

More than eight million people will receive the boost in three instalments over the 2023/24 financial year, with the first payment of £301 being sent out in spring.

However, not all benefit claimants will receive the help.

Those receiving contribution-based Employment and Support Allowance (ESA) will be excluded from the support package.

Dorset Echo:

Last year the benefit was claimed by more than 1.7 million people according to figures from the Department for Work and Pensions (DWP).

Who can claim cost of living payments this year?

There are several benefits that could make claimants eligible for the £301 Cost of Living Payment, including Universal Credit and tax credits – through which 5.4 million households across the UK are expected to qualify, and Pension Credit, through which 1.4 million pensioner households are expected to be paid. 1.3 million will be eligible through legacy DWP benefits such as Jobseekers Allowance and Income Support, reaching a total of 8.1 million households.

Eligible individuals do not need to apply for payments, as they are made automatically. Those eligible for cost of living payments through tax credits, and no other means-tested benefits, will be paid by HMRC shortly after DWP payments are made.

When will DWP cost of living payments be paid?

Exact payment windows and qualifying periods for eligibility will be announced in due course, but are designed to ensure a consistent support offer throughout the year. Payment windows will be broadly as follows:

  • £301 – First 2023/24 Cost of Living Payment – during Spring 2023
  • £150 – 2023 Disability Payment – during Summer 2023
  • £300 – Second 2023/24 Cost of Living Payment – during Autumn 2023
  • £300 – 2023 Pensioner Payment – during Winter 2023/4
  • £299 – Third 2023/24 Cost of Living Payment – during Spring 2024

Work and Pensions Secretary, Mel Stride said: “These direct payments will help people right across the UK over this year and the start of the next, as we continue to provide consistent, targeted and substantial support for the most vulnerable.

“Our wider support package, including the Energy Price Guarantee, will ensure every household is being helped through this challenging period of high inflation, caused by Putin’s illegal war and the aftershocks of the pandemic.”