8 million families receiving £299 payment from TODAY
Amber Middleton
Content writerThe Department for Work and Pensions has begun issuing the final Cost of Living payment to low-income households – are you eligible?
Households across the UK will start receiving cash payments of £299 from today, 6 February.
This is the third and final instalment of the £900 Cost of Living payment, issued to people claiming certain benefits amid the cost of living crisis.
The Department for Work and Pensions (DWP) today announced that eight million households are set 'to receive £2.5 billion Cost of Living support'.
The £299 will be the final Cost of Living payment – following payments of £301 and £300 issued last year – with more emphasis now being placed on 'securing long-term financial security through work thanks to the next generation of welfare reforms', the DWP explained.
However, not everyone eligible will receive the payment today with payments issued anytime between 6 and 22 February, depending on your circumstances.
Here's when you can expect to receive your payment.
- 'I tried Martin Lewis' credit card tip and paid off my debt'
- £10 Primark bag that 'ticks every box' is a dupe for Jimmy Choo
- £299 Cost of Living payment will only go to certain households
What is the Cost of Living payment?
Cost of Living payments are payments issued to households who claim certain benefits such as Universal Credit or Tax Credits.
The payments were first introduced in July 2022 to help low-income families cope with the rising cost of living.
This was then extended, with Jeremy Hunt announcing in his Autumn Statement that three more payments would be issued worth £900 in the tax year 2023/24.
The £900 has been broken down into three payments: £301, paid out in the spring of last year, £300, paid in October and November 2023, and £299 which has started being issued today.
Who is being paid today?
If you receive your benefits from the DWP, you should receive a payment worth £299 sometime between today and 22 February 2024. This will be issued to people claiming the following:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
Why haven't I received my payment yet?
If you haven't received your payment this morning, don't panic yet. Not everyone who is eligible will be paid today. If you're on a means-tested benefit, you could be paid any time within the timeframe of 6 to 22 February.
If you receive an eligible benefit paid via HMRC – such as Working Tax Credit and Child Tax Credit – your payment will be issued between 16 and 22 February 2024.
Who will be paying me?
If your benefit is paid by the DWP, then the DWP will pay your Cost of Living payment.
You will see the code 'DWP COL', along with your National Insurance number alongside the payment in your bank account.
If you claim an eligible HMRC benefit – so working tax credit or child tax credit – you will be paid by HMRC. You will see the code 'HMRC COLS' along with your National Insurance number alongside the payment in your bank account.
Your Cost of Living payment will be paid into the same bank account in which you receive your benefit.
Who is eligible?
To receive the Cost of Living payment, you must be claiming one of the following qualifying benefits:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
You must have been eligible for a payment during the qualifying period between 13 November 2023 and 12 December 2023.
Why might I not be eligible?
You will not be eligible for the second Cost of Living Payment if your benefit is reduced to £0 – a ‘nil award’. This sometimes happens if your earnings or savings have gone up.
However, if your benefit was reduced to £0 during the qualifying period, for the following reasons, you could still be eligible:
- money was taken off your benefit for other reasons, such as payments of rent to your landlord or for money that you owe
- you had a hardship payment because you could not pay for rent, heating, food or hygiene needs
There are also many benefits that don't make you eligible for the payment such as:
- Attendance allowance
- Carer's allowance
- Child benefit
- Disability living allowance (DLA)
- Contributory, or "new style", employment and support allowance (ESA)
- Guardian's allowance
- Contribution-based, or "new style", jobseeker's allowance (JSA)
- Maternity allowance
- Personal independence payment
- State pension
- Statutory adoption, maternity, paternity and shared parental pay
- Statutory sick pay
Can I receive the £299 if I've not received previous payments?
As long as you're eligible for a qualifying benefit during the qualifying period, you will be eligible for the £299.
With the cost of living crisis continuing, more and more people have received each payment.
What payments have previously been issued?
The following Cost of Living payments have already been issued:
- 14 and 31 July 2022: People on eligible DWP benefits received £326, the first instalment of the £650
- 2 and 7 September 2022: Those on Tax Credits received the £326
- 8 and 23 November 2022: Most people on DWP benefits received the second half of the £650, worth £324
- 23 and 30 November 2022: The £324 was paid out for people on Tax Credits
- 25 April and 17 May 2023: The first instalment of the £900 was paid out, worth £301 for most people on DWP means-tested benefits and Tax Credits
- 20 June and 4 July 2023: £150 Disability Cost of Living payment was issued for people claiming certain benefits such as the disability living allowance
- 31 October and 19 November 2023: £300 was issued, the second instalment of the £900
- November and December 2023: A Pensioner Cost of Living payment of £300 is being paid to pensioners who get Winter Fuel Payment
Will there be more Cost of Living payments?
Following the third payment for £299, there are so far no plans to extend the payments further.
In November, Labour MP Sir George Howarth asked whether the payments would continue into 2024 and Mims Davies, MP and DWP representative at the DWP said there were 'no plans' to extend the cost of living payments beyond the spring.
She said that this was because the rate of inflation had slowed and the government would be increasing benefits to help low-income households.
What other money help can I get?
If you're not eligible for Cost of Living payments, you could be eligible for the Household Support Fund. This is another DWP-funded scheme which allocates funding to local councils across England which is then given to residents.
Each council sets their own eligibility criteria for who can apply for their share of the fund, and in some councils, this is for people who aren't claiming certain benefits or who have not been eligible for the cost of living payments.
Take a look at our cost of living hub for more money tips and tricks.
Here you can find advice on all the benefits and entitlements you might be eligible for including the latest updates on Universal Credit, Child Benefit and other benefits, Cost of Living payments and other benefits.
Plus, take a look at Martin Lewis' hottest tips on budgeting, debt and surviving the cost of living crisis.
Related stories
