DWP warns some people may need to pay back cost of living cash at later date (2024)

An estimated eight million cost of living payments for £326 landed in bank accounts across the country between July 14 and 31 providing a much-needed financial boost to households battling to keep on top of soaring energy bills and rising inflation. However, the Department for Work and Pensions (DWP) has now announced that some people may have to pay the money back.

The cash is part of the £650 means-tested cost of living payment which is being given to those on Universal Credit, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Income Support and Pension Credit. Tax Credits claimants will also receive the support from HM Revenue and Customs (HMRC), with the first payments for £326 due to be made in September.

But in a new update on the official Cost of Living Payment guidance page, DWP warned: “If you have received a Cost of Living Payment, but we later find that you were not eligible for it, you may have to pay it back.”

DWP and HMRC are using a computer program to identify those eligible to receive a cost of living payment and advise: “If you are not content with this you can contact the office that pays your benefit or tax credits to discuss it.”

Eligibility guidelines for all three cost of living payments were set out in May. These include the £650 payment for low-income households on certain income-related benefits, £150 for people claiming disability benefits and £300 for eligible pensioner households.

Earlier this week, DWP added a new online form for people who think they should have received the £326 payment, but have not yet done so.

But before reporting a missing payment, DWP urges claimants to check their bank, building society or credit union account, or Payment Exception Service voucher receipt - find out more about this here.

To use the ‘Report a missing Cost of Living Payment’ form on GOV.UK, you will need your National Insurance number.

Reason you may not have received a payment

DWP has also listed several reasons why you may not have received a payment.

This might be because:

• You're still waiting for a decision on your benefit application or appeal - if you're eligible, you'll get the Cost of Living Payment automatically later
• The payment is not due yet for your benefit - for example, if you get Tax Credits, you will not get your first Cost of Living Payment until Autumn 2022

You're not eligible for it - to get the £326, you must have been either:

• Entitled to a Universal Credit payment for an assessment period that ended in the period April 26, 2022 to May 25, 2022
• Entitled to an income-based JSA, income-related ESA, Income Support or Pension Credit payment for any day in the period April 26, 2022 to May 25, 2022

Am I eligible for a cost of living support payment?

Here is everything you need to know about the £326 cost of living payment - and all the other support coming this year - for people living in Scotland, England and Wales.

You could get up to three different types of payment depending on your circ*mstances on a particular date or during a particular period:

• £650 Cost of Living Payment - if you get a qualifying low income/means-tested benefit or Tax Credits - paid in two instalments of £326 and £324
• £150Disability Cost of Living Payment - if you get a qualifying disability benefit
• £300 Pensioner Cost of Living Payment - if you’re entitled to a Winter Fuel Payment for winter 2022 to 2023

Who does not qualify for the £650 payment?

You will not be eligible for a payment if you get New Style Employment and Support Allowance, Contributory Employment and Support Allowance or New Style Jobseeker’s Allowance, unless you get Universal Credit.

Qualifying low income benefits and Tax Credits

You may be eligible for a payment of £650 paid in two lump sums of £326 and £324 if you get payments of any of the following:

• Universal Credit
• income-based Jobseeker’s Allowance (JSA)
• income-related Employment and Support Allowance (ESA)
• Income Support
• Pension Credit
• Child Tax Credit
• Working Tax Credit

If you have a joint claim with a partner, you will get one payment of £326 and one payment of £324 for your joint claim - if you are eligible.

Universal Credit

To get the first Cost of Living Payment of £326, you must have been entitled to a payment of at least 1p - or later found to be entitled to a payment - of Universal Credit for an assessment period that ended in the period April 26, 2022 to May 25, 2022.

DWP will update the guidance on GOV.UK when the UK Government has announced the qualifying dates to get the second payment of £324.

Universal Credit ‘nil awards’

You will not be eligible for the £326 Cost of Living Payment if your earnings reduced your Universal Credit to £0 for the qualifying assessment period - this is sometimes called a ‘nil award’.

If money has also been taken off for other reasons, such as payments of rent to your landlord or for money that you owe, you may still be eligible.

Income-based JSA, Income-based ESA, Income Support and Pension Credit

To get the first Cost of Living Payment of £326, you must have been entitled to a payment, or later found to be entitled to a payment, of Income-based JSA, Income-related ESA, Income Support or Pension Credit for any day in the period April 26, 2022 to May 25, 2022.

Tax Credits

To get the first Cost of Living Payment of £326, you must have received, or later receive, for any day in the period April 26, 2022 to May 25, 2022:

• A payment of Tax Credits
• An annual award of at least £26 of Tax Credits

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

If you get Tax Credits from HMRC and a low income benefit from DWP, you will get a Cost of Living Payment from DWP only before the end of July.

If you only receive Tax Credits, you will get the first payment of £326 from autumn 2022 and the second payment of £324 from winter 2022 - a date for the first payment has not yet been announced.

Backdated Cost of Living payments

Your payment may come later, for example if you are awarded a qualifying benefit at a later date or you change the account your benefit or Tax Credits are paid into.

You will still be paid the Cost of Living Payment automatically and do not need to contact DWP or HMRC.

£150 if you get certain disability benefits

You may get a lump sum payment of £150 if you’re getting any of the following:

• Attendance Allowance
• Constant Attendance Allowance
• Disability Living Allowance for adults
• Disability Living Allowance for children
• Personal Independence Payment
• Adult Disability Payment
• Child Disability Payment
• Armed Forces Independence Payment
• War Pension Mobility Supplement

Eligibility

You must have received a payment (or later receive a payment) of one of these qualifying benefits for May 25, 2022 to get the payment.

If you get a qualifying disability benefit from the Ministry of Defence (MOD) and a qualifying disability benefit from DWP, you will get a Disability Cost of Living Payment from DWP only.

When you will get paid

Payments will be made from September 2022.

If you also get a qualifying low income benefit or Tax Credits, you may get an additional Cost of Living Payment.

£300 one-off payment for people of State Pension age

All eligible pensioner households will get the one-off ‘Pensioner Cost of Living Payment’ added as a top-up to their annual Winter Fuel Payment in November/December.

We have a full guide to all the different household combinations that qualify for the £300 payment here.

Eligibility

People will be eligible for this payment if they are over State Pension age (aged 66 or above) between 19-25 September 2022 and in receipt of the Winter Fuel Payment

The £300 is not taxable and will be paid on top of any other one-off support a pensioner household is entitled to, for example where they are on Pension Credit or receive disability benefits

The payment does not affect eligibility for other benefits

Who does not qualify for £300 payment?

There are certain circ*mstances where an individual above State Pension age does not qualify for the Winter Fuel Payment which can be found on GOV.UK, here

When you will get paid

Payments will be made over November and December.

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