Everything you need to know about the third DWP cost of living payment worth £299
Amber Middleton
Content writerThe dates have now been announced for the third Cost of Living payment worth £299 – we've compiled a list of everything you need to know
We now know exactly when the Department for Work and Pensions will pay more than 8 million people the third Cost of Living payment.
This is the third and final instalment of a £900 payment issued to people on certain benefits such as Universal Credit, amid the cost of living crisis.
Those eligible already received the first instalment, worth £301 in Spring, and the second, worth £300 was paid out in the autumn, with the third coming early next year. This payment will be worth £299.
The DWP said: 'Around 8 million households will receive a £299 #CostOfLivingPayment between 6 Feb 2024 and 22 Feb 2024.'
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What are the Cost of Living payments?
Cost of Living payments are grants offered to households who claim certain benefits, paid by the DWP and HMRC. These are paid additional to normal benefits.
The payments were first introduced in July 2022 where eligible claimants received two payments totalling £650.
As living costs continued to rise, the Chancellor, Jeremy Hunt announced in his Autumn Statement that a further three payments would be made available the following tax year. This is the £900 payment.
The £900 has been broken down into three payments: £301, which was paid out in the spring of this year, £300, paid in October and November and £299 which will be paid out in February 2024.
Who is eligible?
In order to receive the Cost of Living payments, you must be claiming certain benefits.
The qualifying benefits are:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
Who isn't eligible?
If the only benefits and entitlements you receive from the DWP are on the list below, you will not be eligible for the Cost of Living payments:
- New Style Employment and Support Allowance (ESA)
- Contributory ESA
- New Style Jobseeker's Allowance (JSA)
You will also 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.
If your benefit was reduced to £0 during the qualifying period, for the following reasons, you may still be eligible for a Cost of Living Payment:
- 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
You also will not be eligible for the Cost of Living Payment if your tax credits entitlement for the tax year is below £26.
What is the qualifying period?
The qualifying period is a period of time when you must be receiving an eligible benefit in order to get the cost of living payment. This qualifying period usually comes two months before the payment.
Between 31 October and 19 November 2023, the second cost of living payment was made and its qualifying period was between 18 August and 17 September.
The qualifying period for the £299 has not yet been announced, although it's expected that if you are currently entitled to benefits, you will get the third payment.
Martin Lewis said: 'The eligibility is based on if you're due qualifying benefits which is most means-tested benefits, universal credit, tax credits, employment support, between November 13 and roughly 12 December
'So if you're eligible now, you will get it next February.'
When will the spring payment be issued?
Most eligible recipients receive the £299 payment between 6 February and 22 February 2024.
The dates were first announced Tuesday 12 December by Martin Lewis on the Martin Lewis Money Show Live. The DWP confirmed the dates the following morning.
Who pays it?
Who pays your benefits determines who will pay your Cost of Living payment.
If you get Tax Credits from HMRC and also a low-income benefit from DWP, you will be paid by DWP only.
If you are getting both Child Tax Credit and Working Tax Credit, you will receive the £300 for Child Tax Credit only, which will be paid by HMRC.
Who gets paid first?
With previous Cost of Living payments, there was two payment windows and those claiming DWP benefits received their instalment before those claiming HMRC benefits, although differing dates have not been announced for the third payment yet.
What will the payment reference be?
The payment reference will be your National Insurance Number followed by 'DWP COL' or 'HMRC COLSD', depending on who pays it.
Which payments have been issued previously?
The following Cost of Living payments have 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
Can I still get it if I didn't receive the previous instalments?
Yes.
As long as you receive a qualifying benefit during the qualifying period, you can be eligible for it.
More people were eligible for the second Cost of Living payment than the first.
Can I apply?
No – you will receive the payment automatically if you are eligible.
What bank will I be paid into?
The £299 will be paid into the bank account where you receive your benefits.
Will there be more payments in 2024?
Following the third payment for £299, there are no plans to extend the payments further, despite calls for it.
In November, Labour MP Sir George Howarth asked whether the payments would continue into 2024.
Mims Davies, MP and DWP representative at the DWP confirmed: 'There are currently 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.
This comes after the Chancellor announced benefits would be increased by 6.7% in his Autumn Statement last month. 5.5 million households on Universal Credit will benefit from this, seeing an increase of £470 over the next tax year.
Do I need to pay the payment back?
No, the Cost of Living payments are grants.
They are also tax-free and will not affect your other benefits or entitlements.
Can I check my eligibility online?
Yes, you can use this page on the Gov.uk website that enables you to work out what benefits or allowances you might be able to claim by putting your current financial info into a 3rd party calculator.
If you can receive an eligible benefit then you could be eligible for a Cost of Living payment.
More money help
Need more money help? Take a look at our cost of living hub for more money tips tricks.
We have 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 Martin Lewis' hottest tips on budgeting and making Christmas as cheap and easy as possible!
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