DWP issues update about additional Cost of Living payments for 2024

Cost of Living payments have offered a lifeline for families over the past two years – now the DWP has issued a statement as to whether they'll continue into 2024

The Department for Work and Pensions (DWP) has issued a statement on any future Cost of Living payments for 2024.

Cost of Living payments are grants issued by the government to people struggling financially amid the cost of living crisis.

For the tax year 2023/24, the government has already issued two payments worth £301 and £300, with a third payment worth £299 coming in February next year, to make a total of £900 in payments.

There have been calls for the payments to continue past spring 2024, and the DWP has issued an update about future payments.

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'No plans to extend the payments'

Earlier this year, the DWP Minister of State for Disabled People, Health and Work, Tom Pursglove, said: 'There is ongoing work to review the cost of living payments that the Government has made available in the current climate.'

He added that the results of this would come in autumn.

Labour MP, Sir George Howarth later asked whether the DWP would be continuing the payments into 2024.

In response, Mims Davies, MP and DWP representative has now confirmed there are currently no plans to extend the payments.

In a written response he said: 'There are currently no plans to extend the cost of living payments beyond the spring.

'Cost of living payments enabled us to target further support during the rising cost of living pressures.

'Delivering lump sum payments got support faster to those who needed it, reflecting our commitment to providing direct and timely relief to those who need it most.

'The rate of inflation has slowed, and we have been able to implement uprating to other benefits in the meantime to reflect increased costs.'

This comes after the Chancellor announced that benefits would be increased by 6.7% in his Autumn Statement last month. This meant that 5.5 million households on Universal Credit would see an increase of £470 over the next tax year.

What are the Cost of Living payments?

Cost of Living payments are tax-free grants given to low-income and struggling households across the UK by the DWP.

They were first introduced by Jeremy Hunt in 2022 with two payments that totalled £650 for people claiming certain benefits such as Universal Credit and Tax Credits. Later that year in his Autumn Statement, Mr Hunt announced that the payments would be extended for the tax year 2023/24.

The £900 payment for 2023/2023 was broken down into three instalments worth £301, £300 and £299.

There have been additional payments in the past year with different criteria, for example, the Pensioner £600 Cost of Living Payment, available for people born before 25 September 1957 and the £150 Disability Cost of Living payment for claimants of different benefits, such as the disability living allowance and personal independence payment.

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Who is eligible for the £900 payment?

The £900 is available for people claiming one of the following qualifying benefits in a qualifying period:

• Universal Credit
• Income-based Jobseekers Allowance
• Income-related Employment and Support Allowance
• Income Support
• Pension Credit
• Working Tax Credit
• Child Tax Credit

The qualifying period comes around two months before the payment is due, so the £300 paid was paid between 31 October and 19 November 2023 and its qualifying period was between 18 August and 17 September.

How do I apply for the payment?

You do not need to apply for a payment, you will automatically receive it into the bank account where you get your benefits.

Which Cost of Living payments have been issued so far?

• £326 was issued between 14 and 31 July 2022 for those on DWP benefits and between 2 and 7 September 2022 for people on Tax Credits
• £324 was paid between 8 and 23 November 2022 for most people on DWP benefits – or between 23 and 30 November 2022 for people on Tax Credits
• £301 was paid between April 25 and May 17 for most people on DWP benefits and Tax Credits
• £150 Disability Cost of Living payment was issued between 20 June and 4 July
• £300 was paid during autumn 2023 – between 31 October and 19 November for most people on DWP benefits and Tax Credits

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Which payments are there to come?

The DWP will issue £300 to pensioners who get Winter Fuel Payment. The DWP began issuing it in November and it will continue to be paid through December.

Following this, there will be a final Cost of Living payment, the third instalment of the £900 worth £299 that will be paid out to 8 million households.

This means there's £599 yet to come in this financial year.

The DWP has announced that the third payment will be made between 6 February and 22 February 2024 for most people.

More money advice

You can visit our cost of living hub for further money tips.

There you'll find advice that could help you with everyday costs, budgeting and more.

You'll find more stories about the Household Support Fund, Cost of Living payments and other benefits.

There's also Martin Lewis guidance in the run-up to Christmas Day, and helpful hacks to keep the cost of your weekly shop down.

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