Cost of Living Payment

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The Cost of Living Payment is an extra payment of up to £650 paid to help people with the cost of living. You may be eligible for up to get the Cost of Living payment if you’re claiming benefits or tax credits.

The Cost of Living Payment will be paid in two installments. Most of the first payments of £326 will be made between July 14th 2022 and the end of July 2022.

If you’re entitled to the second payment, you’ll get £324 in autumn 2022.

How to apply for the Cost of Living Payment?

You don’t have to apply for the Cost of Living Payment. If you’re eligible, you’ll receive the money automatically.

How will I be paid the Cost of Living Payment?

You’ll be paid the Cost of Living payment in the same way you receive benefits or tax credits payments.
 
You’ll receive the payments separately from your existing benefits or tax credits.

Will the Cost of Living Payment affect my benefits?

No, the Cost of Living Payment won’t affect your benefits or tax credits. You also won’t pay an extra tax because of the payment.

If you’re eligible, you’ll get a total of £650 paid in two installments of £326 and £324

Will I get the Cost of Living Payment while claiming Universal Credit?

You must have been entitled to a Universal Credit payment (or later found to be entitled) for an assessment period that ended in the period 26th April 2022 to 25th May 2022 to receive the first Cost of Living Payment.

The Government haven’t announced the Universal Credit dates to be entitled to the second payment.

Will I get the Cost of Living Payment while claiming Jobseeker's Allowance?

You must have been entitled to a income-related Jobseekers Allowance for any day in the period 26th April 2022 to 25th May 2022 to receive the first Cost of Living Payment.

The Government haven’t announced the JSA dates to be entitled to the second payment.

Will I get the Cost of Living Payment while claiming Employment and Support Allowance?

You must have been entitled to a income-related Employment and Support Allowance for any day in the period 26th April 2022 to 25th May 2022 to receive the first Cost of Living Payment.

The Government haven’t announced the ESA dates to be entitled to the second payment.

Will I get the Cost of Living Payment while claiming Income Support?

You must have been entitled to Income Support for any day in the period 26th April 2022 to 25th May 2022 to receive the first Cost of Living Payment.

The Government haven’t announced the Income Support dates to be entitled to the second payment.

Will I get the Cost of Living Payment while claiming Pension Credit

You must have been entitled to Pension Credit for any day in the period 26th April 2022 to 25th May 2022 to receive the first Cost of Living Payment.

The Government haven’t announced the Pension Credit dates to be entitled to the second payment.

Will I get the Cost of Living Payment while receiving Tax Credits?

You may get a Cost of Living Payment of £650 paid in two installments of £326 and £324 if you have get any of the following:

To be eligible for the first Cost of Living Payment of £326, you must have received a payment, or an annual award of at least £26, of Tax Credits on any day in the period 26th April 2022 to 25th May 2022.

The Government haven’t announced the eligibility to the second payment for people who receive Child Tax Credit or Working Tax Credit.

If you have a joint claim, you’ll get one payment of £326 and one payment of £324.

If you get both Child Tax Credit and Working Tax Credit, you’ll only receive a Cost of Living Payment for Child Tax Credit.

If you get tax credits from HMRC and a low income benefit from DWP, you’ll only get a Cost of Living Payment from the DWP.

What low income benefits claimants won't receive the Cost of Living Payment?

You won’t get a Cost of Living Payment if you get:

  • New Style ESA
  • Contributory ESA
  • New Style JSA

Unless you’re also claiming Universal Credit.

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