DWP explains after 'surprise' £150 payments land in accounts

Some people have received 'unexplained' payments worth £150 to their bank accounts that have left them confused

The Department for Work and Pensions (DWP) has issued a statement after people began receiving 'unexpected' £150 to their bank accounts this week.

It comes after the recipients spoke out about their confusion over what the payments were for.

Many went online to question whether they were being issued a second disability cost of living payment – following the first disability cost of living payment which was issued in summer 2023.

The DWP has now clarified who will be receiving the £150 and why.

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The 'new' £150 payment

The £150 payment is not a second cost of living payment but instead, a first payment for some.

A spokesperson for the DWP explained: 'The DWP regularly reviews people's entitlements to ensure they receive the correct payments.

'People were identified who were retrospectively entitled to the Disability Cost of Living payment. This could be due to a change of benefit circumstances or a request for backdating when their claim is processed.

'We undertake these exercises periodically even if the claimant did not contact us to inform us of a missing payment.'

It means those people who have recently received £150 cost of living payments previously missed out on the £150 payment when they were issued last summer.

These people were eligible for the disability benefit but weren't claiming it at the time and are now receiving backdated payments for it.

A 'payment to help with rising cost of living and disability-related costs'

The Disability Cost of Living payment is a payment worth £150 that's made to families who claim certain disability benefits including the disability living allowance.

Most eligible claimants initially received the £150 between 20 June and 4 July 2023.

The DWP said: 'This payment is to help with the rising cost of living and higher disability related costs, such as care and mobility needs.'

At the time the DWP said that the money would help ease financial pressures on many families worrying about how they'll pay the bills and 'help protect those who need our support the most'.

The DWP also said it would provide 'a vital financial boost to 6 million disabled people' in the UK.

Who is eligible for the £150 Payment?

Those claiming the following benefits would have been eligible for a £150 disability cost of living payment:

• Disability living allowance
• Personal independence payment
• Attendance allowance
• Scottish disability benefits
• Armed Forces independence payment
• Constant attendance allowance
• War pension mobility supplement

The DWP said: 'You must have received a payment (or later receive a payment) of one of these benefits for 1 April 2023 to get the Disability Cost of Living Payment.

'If you were getting a qualifying benefit from the Ministry of Defence and a qualifying benefit from DWP, you will get a Disability Cost of Living Payment from DWP only.'

If you claim eligible means-tested benefits, you can receive this on top of the other Cost of Living payments.

What are the other cost of living payments?

This cost of living payment comes just a week before the final instalment of the DWP's £900 payment issue to people claiming Universal Credit, Tax Credits and other means-tested benefits, worth £299.

These cost of living payments were first introduced by Chancellor Jeremy Hunt in 2022, with two payments totalling £650 given to qualifying claimants.

In November 2022, the payments were extended for another year, issuing a further £900 for 2023/24 over three payments.

Next week will be the final DWP payment worth £299.

All of the payments have been available for claimants eligible for one of the following benefits during each qualifying period:

• 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

Read our guide on the 15 'need to knows' for more information about the £299 payment.

Do I have to apply for the £150 DWP payment?

You don't need to apply. The DWP will pay this money into your account automatically.

The one-off payment will be paid into the bank account where you normally receive your benefit, marked as a separate payment.

The payment will be labelled 'DWP COL' followed by your National Insurance number.

Will I have to pay it back?

You won't have to pay any cost of living payment back, as long as you are eligible.

Though it won't apply to most people, the DWP has issued a warning to anyone who receives the £150 payment who shouldn't have as they are NOT eligible for it.

The warning, on their website, reads: 'If you receive a Disability Cost of Living Payment, but we later find that you were not eligible for it, you may have to pay it back'.

What's the full cost of living payment schedule for 2023/24

The full cost of living payment schedule for 2023/2024 is as follows:

• £301 was paid between April 25 and May 17 for most people on DWP means-tested benefits
• £301 paid between May 2 and 9 for most people on HMRC tax credits and no other means-tested benefits
• £150 paid between June 20 and July 4 for people on disability benefits. Qualifying date was April 1. Some payments are still being made but there is no 'second' payment.
• £300 was paid between 31 October and 19 November for people on means-tested benefits.
• £300 was issued in November and December to pensioners who get Winter Fuel Payment
• £299 will be paid to people on means-tested benefits between 6 and 22 February 2024

More money advice

Need more money advice? Head to the Netmums' Cost of Living hub.

Here you'll find details on all the benefits and entitlements you may be able to claim plus government-based advice on cash you might be entitled to.

There are also top tips from the Money Saving Expert, Martin Lewis, weekly budgeting advice, and when's the best time to book that all-important holiday.

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