What are the DWP Cost of Living payments… and am I eligible?
Clare Swatman
Netmums contributorFrom what they are to when they get paid, here's the full lowdown on the government's Cost of Living payments
You've probably heard of 'Cost of Living' payments, but might not be entirely sure what they are and if you're eligible.
The one-off payments from the government's Department for Work and Pensions (DWP) were first introduced in 2022, and have given millions of low-income families a much needed cash-boost.
But who is entitled to these payments – can you apply even if you're NOT on benefits? And when will the money reach your bank account?
Here's everything you need to know, as well as details on how to find out if you're eligible.
- DWP announces exact dates for third Cost of Living payment
- How old do people need to be to claim the DWP Cost of Living payments?
- Full list of DWP cost of living payments for 2023/2024
What are Cost of Living payments?
Put simply, the Cost of Living payments are one-off cash payments made by the Government, which aim to help people on certain benefits ease the effects of rising prices.
First introduced by Jeremy Hunt back in May 2022, they have so far helped more than 7million hard-up families cope with rising prices - including food costs and energy bills.
They're given out by the Department for Work and Pensions (DWP) to certain eligible households.
First round of payments – 2022
Initially, only 2 payments were announced - worth £650. A first payment of £326 was made in July 2022, followed by a second payment worth £324 in November 2022.
Second round of payments - 2023
A second group of payments was then announced in November 2022 to cover the financial year 2023-2024, worth £900 in 3 separate handouts.
The first of these was given out in April 2023, the second was be paid between 31 October and 19 November 2023.
The third will be given out between 6 February and 22 February 2024 for most people.
How do I know if I'm entitled to the payments?
If you receive certain benefits then you are entitled to a Cost of Living payment.
You are eligible if you receive one of the following benefits:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
However, you won't be eligible for the payments if you're only getting the below benefits:
- New Style Employment and Support Allowance (ESA)
- Contributory ESA
- New Style Jobseeker's Allowance (JSA)
How you'll be paid will depend on which benefits you're getting too.
You can learn more about eligibility for the second payment here.
When will the payments be made?
The first 2 payments were made in July and November 2022, totalling £650.
The Government then announced 3 further payments for the financial year 2023-2024.
The first has already been paid out those eligible between 25 April and 17 May OR between 2-9 May this year (depending on which benefits you claim). This was worth £301.
Second 2023 payment
The second of the 3 payments – worth £300 – was paid between 31 October and 19 November 2023.
What is the qualifying period?
You need to have been entitled to a payment for a qualifying benefit between 18 August and 17 September to be eligible for this payment.
This is the same for both DWP and HMRC benefit claimants.
The money will be sent out automatically and directly to recipients, meaning those eligible do not need to apply or take any action to receive it.
It will be paid into the bank account where you normally receive your benefits, and the payment reference will be your National Insurance Number followed by "DWP COL" or "HMRC COLSD".
Third payment
How can I apply for the Cost of Living payments?
You don't need to apply, it will be automatically paid. Your existing benefits won't be affected. However if you believe you are entitled and have not received your payment go here.
Even if you weren't eligible to get the first Cost of Living payment, you MIGHT still be able to get the second payment – if you started receiving 1 of the above benefits after the first payment was given out.
If you ARE eligible or are found eligible at a later date, you'll automatically get the payment, just like you receive Tax Credits or benefits.
However if you have received a Cost of Living Payment, but were not eligible for it, you may have to pay it back.
This guidance will be updated with the payment dates before each payment starts.
Other Cost of Living payments
If you are not entitled to the Cost of Living payments outlined above, you may be eligible to other help, including:
The Pensioner Cost of Living payment is available to those over the state pension age (66+) who claim winter fuel payments. Payments will be between £150 and £300 and are likely to be paid around November.
The Household Support Fund (HSF) is financial help provided to struggling households via the local council.
HSF help available varies from council to council and could be in the form of cash grants, supermarket vouchers or even energy saving appliances which could help save you money, such as air fryers. You can see what's available in many areas of the country here or contact your local council for further details.
You could also be in line for help towards your energy bills, through the Government's Warm Home Discount or a cold weather payment if the temperature in your area drops. Find out more about these schemes and the other payments set to come this year (worth up to £1,275) here.
Cost of Living advice
See our Cost of Living hub which has all the latest stories about benefits and entitlements, and up-to-date information from the DWP.
You can find Government-based advice on cash you might be entitled to and the latest dates of when you can expect the latest payments to land in your bank account.
There are also top tips from the Money Saving Expert, Martin Lewis, as well as brilliant ideas for saving money on everything from your weekly shop, to that well-deserved holiday.
Related stories
Second Cost of Living Payment to land within weeks
Full list of DWP payments for low income households in 2023 and 2024
