Don’t miss out on the £301 Cost of Living Payment as a recipient of Pension Credit – submit your application for Pension Credit before FRIDAY – 19 May.
Did you know, if you get Pension Credit you could also get a help with your council tax, housing costs, broadband fees and energy bills?
You could be on average £3,500 a year better off.
To check your eligibility and to apply, visit: http://ow.ly/KfW350Oh0na
More than 7 million households across the UK will have been paid a £301 Cost of Living Payment by the end of today (3 May 2023).
This means the vast majority of eligible households have received the support in just 8 days of the rollout starting, with the small number of payments outstanding to be made by 17 May.
The payment is the first of 3 Cost of Living Payments being made this year and the next, illustrating the government’s commitment to supporting vulnerable families with financial pressures. This comes alongside work to deliver on the government’s 5 priorities, including halving inflation and growing the economy, which will ultimately help put more money in people’s bank accounts at the end of the month.
Mel Stride, Secretary of State for Work and Pensions, said: “Paying more than 7 million households £301 in a little over a week underlines our commitment to ensure those on the lowest income are protected from the worst of rising prices and give them peace of mind.
“With further payments due to be made later this year and in 2024, we will continue to provide support to those who need it most while we tackle inflation and grow the economy.”
Jeremy Hunt, Chancellor of the Exchequer, added: “We know the impact that rising prices are having on families, which is why we are providing significant support to millions through these direct cash payments. This is alongside other support, including holding down energy bills, uplifting benefits and the State Pension by 10%, and increasing the National Living Wage by a record amount.
“The single best way to ease cost of living pressures is to bear down on inflation. We are on track to halve it this year, laying the foundation for the long-term growth needed to improve everyone’s living standards.”
The Cost of Living Payments, spread across 2023/24, are worth up to £900 for those on means-tested benefits. The next payment for those on means-tested benefits is due in the autumn, with the third instalment due next spring.
These are accompanied by a £150 payment for people on eligible disability benefits this summer, and a £300 payment to top up Winter Fuel Payments for pensioners at the end of 2023 – meaning some will receive up to £1,350.
This makes up part of the government’s significant cost of living support – now worth an average of £3,300 per household over this year and last.
People will be eligible for the £301 Cost of Living Payment if they have been entitled to a payment for one of 7 benefits between 26 January and 25 February 2023. The eligible benefits are:
The DWP encourages anyone who thinks they may be eligible for a qualifying benefit to use a benefits calculator to check their entitlement. In particular, low-income pensioners should check their eligibility for Pension Credit, as they may still be able to receive the £301 Cost of Living Payment, and subsequent payments, if they make a successful backdated application by 19 May 2023.
The small number of payments outstanding will continue to be made between now and 17 May, and anyone eligible still waiting for a payment does not need to contact the Department for Work and Pensions (DWP) before then.
After this date, if someone thinks they may be missing a payment they are entitled to, a form can be filled out on the GOV.UK website to make a claim.
One million eligible families, receiving tax credits only, will get their £301 Cost of Living Payment from HM Revenue and Customs (HMRC) between Tuesday 2 and Tuesday 9 May with the banking reference ‘HMRC COLS’.
This payment comes on top of extensive support given to low-income households in 2022, including up to £1,100 in Cost of Living Payments. The Household Support Fund, worth over £2 billion across its lifetime, continues to offer support to people across England, and those in need should contact their local council to see what support is available in their area.
Over eight million households across the UK will receive a £301 Cost of Living Payment from the Government, with payments rolled out from today, demonstrating the Government’s relentless focus on our five priorities – including halving inflation, growing the economy and reducing debt.
As the cost of living continues to affect families across the UK, these payments are designed to target support towards the most vulnerable in society and provide them with a financial boost.
The Department for Work and Pensions (DWP) will send payments automatically and directly to recipients’ bank accounts, with a reference of their National Insurance number followed by ‘DWP COL’.
This is the first of up to three payments for those eligible on means-tested benefits, including Universal Credit, Pension Credit and tax credits, totalling £900 through 2023/24. These will be accompanied by a £150 payment for people on eligible disability benefits this summer, and a £300 payment on top of Winter Fuel Payments for pensioners at the end of 2023.
This builds on the significant cost of living support already provided to eligible households throughout 2022 – now worth an average of £3,300 per household over this year and last.
Those entitled do not need to do apply for the payment or do anything to receive it. Payments made during this window will be staggered over the next couple of weeks meaning not everyone entitled to receive a payment will receive it today.
Mel Stride, Secretary of State for Work and Pensions, said: “This latest additional payment will be welcomed by millions of families – as will further payments due over the next year.
“We have continually supported those most vulnerable to rising costs, including through record benefits and national living wage increases as well as these exceptional Cost of Living Payments responding to the global pressures we are facing.
“We will also continue to deliver on our five priorities, including halving inflation, as this will ease pressure on households currently struggling with household bills and rising prices.”
Jeremy Hunt, Chancellor of the Exchequer, added: “The best thing we can do to help people’s money go further is deliver on our priorities to halve inflation and grow the economy.
“But we’re also here to help people through these tough times, which is why we’re holding down energy bills, freezing fuel duty, increasing Universal Credit, and giving £900 payments to low income and vulnerable families – all in part funded through windfall taxes on energy profits.”
People will be eligible for the Cost of Living Payment if they have been entitled to a payment for one of seven benefits between 26 January and 25 February 2023. The eligible benefits are:
Once the majority of those who are entitled to a payment by DWP have been paid, HM Revenue and Customs (HMRC) will make payments of £301 between Tuesday 2 and Tuesday 9 May to one million eligible families receiving tax credits only, with the banking reference ‘HMRC COLS’.
The latest payment follows on from the £650 Cost of Living Payment delivered by the Government in 2022, along with another £150 disability payment and a £300 pensioner payment.
While payments are made automatically, people must be receiving one of the eligible qualifying benefits during the specified period to qualify. Those who wish to check their entitlement to benefits should use a benefits calculator on Gov.uk to get a better idea of what they could receive.
Low-income pensioners particularly should check their eligibility for Pension Credit, as they may still be able to receive the £301 Cost of Living Payment, and subsequent payments, if they make a successful backdated application by 19 May 2023.
Those in need are also encouraged to contact their local council to see if any additional support is available in their local area, such as through the DWP’s Household Support Fund in England, worth over £2 billion across its lifetime.
Further Information
Table 1: Estimated number of households eligible for the means-tested benefit Cost of Living Payment by region
| Region | Households (Thousands) | Proportion of all payments |
| London | 1,187 | 15% |
| South West | 567 | 7% |
| South East | 830 | 10% |
| Eastern | 615 | 8% |
| West Midlands | 783 | 10% |
| East Midlands | 545 | 7% |
| North West | 1,033 | 13% |
| North East | 395 | 5% |
| Yorkshire and The Humber | 713 | 9% |
| Wales | 422 | 5% |
| Scotland | 686 | 8% |
| Northern Ireland | 321 | 4% |
| Total | 8,097 | 100% |
Table 2: Estimated number of individuals eligible for the disability Cost of Living Payment by region
| Region | Households (Thousands) | Proportion of all payments |
| London | 653 | 10% |
| South West | 524 | 8% |
| South East | 733 | 11% |
| Eastern | 535 | 8% |
| West Midlands | 606 | 9% |
| East Midlands | 484 | 7% |
| North West | 878 | 13% |
| North East | 349 | 5% |
| Yorkshire and The Humber | 574 | 9% |
| Wales | 433 | 6% |
| Scotland | 639 | 9% |
| Northern Ireland | 340 | 5% |
| Total | 6,748 | 100% |
The health assessments system to access vital benefits for those who cannot work or face extra costs due to disability or ill-health continues to let down those who rely on it, according to Westminster’s Work and Pensions Committee.
In its latest Report, the Committee calls for the implementation of several measures that would be relatively quick and easy wins to improve trust, drive down the high rate of decisions reversed on appeal and reduce waiting times.
It says assessments should be recorded by default, with claimants having the option to opt-out, adding that footage could be used to review cases more accurately without having to go to appeal, and help assessors learn from past mistakes.
Some of the improvements the Committee suggest could drive down the high rate of decisions reversed on appeal, which still stands at 69% for Personal Independence Payment (PIP). Although the Work Capability Assessment used for Universal Credit and Employment and Support Allowance is due to be abolished, it will remain in place until at least 2026. Meanwhile, PIP assessments will continue, so retaining the status quo is not an option.
MPs on the Committee also recommended allowing claimants to choose between remote or in-person assessments, extending the deadline to return forms, targets to reduce assessment waiting times, and payments to people who have been forced to wait beyond the new targets.
The predecessor Committee originally published a report on significant problems in assessments in 2018, but many of the recommended changes have not been made.
Committee Chair Sir Stephen Timms MP said: ““We surveyed eight and a half thousand people as part of our inquiry and found a profound lack of trust in the system as a consistent theme.
“Many will welcome abolition of the Work Capability Assessment. The Government’s process improvements, and recognition that the system causes undue stress and hardship, are steps in the right direction.
“However, waiting years for changes won’t cut it when quicker wins are available: flexibility of choice on assessment by phone or face-to-face; recording assessments by default; extending deadlines to reduce stress; and sending claimants their reports. All this will give much-needed transparency to a process that so few trust yet affects their lives so fundamentally.
“All efforts must be made for unnecessary limbo and stress for claimants to be put to an end.”
Disabled people are being urged to find out if they are eligible for Scottish Government disability benefits as part of a new campaign to increase benefit take-up.
The nationwide campaign aims to raise awareness about financial support available to help with the extra costs that disabled children and adults may face.
Child Disability Payment provides financial support to help families and carers with the extra costs of caring for a disabled child or young person or a child or young person with a long-term health condition. Adult Disability Payment is available to people aged between 16 and state pension age who are disabled, have a long-term health condition or a terminal illness.
These benefits are administered by Social Security Scotland and replace the Department for Work and Pensions’ Disability Living Allowance (DLA) for Children, DLA and Personal Independence Payment.
People already getting disability benefits from DWP will see their award transfer automatically and they do not need to apply separately.
Social Justice Secretary Shirley-Anne Somerville said: “Being disabled or having a long-term health condition can come with a variety of extra costs, such as paying more for accessible transport. We want to make sure that disabled children and adults get all the extra financial support they are entitled to, to ease the impact of those costs.
“This campaign is not just about raising awareness but also has an important role to play in helping to remove any stigma that people may be worried about when applying for social security. We believe social security is a human right. It is here for any of us should we need it and we want to make sure people are accessing what they are due.
“This is the first time that we are proactively promoting disability benefits as part of a national advertising campaign, including adverts on TV. We are not aware of the UK Government running a campaign on the equivalent UK benefits for over 30-years. I want to actively encourage people to check if they are eligible for Child and Adult Disability Payments and make sure they get extra financial support to help them live full and independent lives.”
The campaign features Piper, 9, who has Down’s Syndrome. Her mum Caroline Milburn, says disability benefits have helped cover extra costs as well as give Piper opportunities she’d never have had without them.
Caroline, from Edinburgh, said: “Piper is such a unique character. When she was born we were told she wouldn’t walk until she was around six, but she was walking at two. She’s so determined and knows her own mind. If she wants to do something she’ll do it.
“Disability benefit allowed me to buy her a sensory swing and a tablet that gives her access to games that help her learn. She just thinks she’s having fun but the games have taught her so much. She plays them with her five-year-old brother sitting beside her and he learns with her.
“Child Disability Payment helps cover the costs of buying Piper new clothes and duvets as she is always chewing holes in them It also allows me to send her to holiday clubs. She loves them and they’re really good for her, but they cost about £40 a week.
“Piper is such an amazing girl and she makes everyone’s lives better. Without disability benefits we’d not have been able to give her all the experiences and opportunities she’s had to learn and connect with the world.”
Thursday 6th April is the first day of the new tax year (hands-up who missed the ISA deadline, again) and a number of changes in both UK and Scottish policy come into effect (writes FRASER of ALLANDER Institute).
Here is a brief rundown of some of the changes that have come into play at the start of this new financial year:;
Firstly, taxes.
For higher rate tax payers the new 1p comes into effect in Scotland as well as the reduction in the threshold for those paying the additional rate, mirroring what has happened in the rest of the UK. Other band thresholds, including the personal allowance (the rate at which people start to pay tax) have remain frozen.
The UK Spring Budget announced changes to the pension annual allowance and lifetime allowance also come into effect.
Council Tax bills have gone up across the country. Local authorities have the ability to vary the Band D rate charged, which then translates into rises in bills across all bands via a set of multipliers. On average, Band D rates have risen by 5%, but there are clear exceptions (Chart 1).
Failure to reform Council Tax makes any additional revenue raised through Council Tax regressive in nature. Failure to revalue the tax base means that increasingly the bills paid by households bear little resemblance to the relative value of their home. This isn’t the fault of Councils – the ball firmly remains in the Scottish Government’s court on this one.
Unlike Council Tax, there has been a revaluation for Non-Domestic Rates. Even though the poundage rate charged to non-domestic properties has remained frozen (as also the case in rUK) businesses will see a change in their bills reflecting their updated ‘rateable values’.
Secondly, benefits
The UK Government announced in its Autumn Statement that reserved benefits would be uprated by 10.1%. This practice of uprating, using the previous September CPI, is standard procedure.
Devolved benefits have received the same uplift from the Scottish Government, with the exception of the Scottish Child Payment. This increased in value in November 2022 and it was decided it was not in scope for further uplift for 2023/24.
Although not strictly a benefit, the continuation of the energy price guarantee on energy means that we are not facing a rise in our energy bills this month. The guarantee has been extended at its current level for a further 3 months, by which time it is hoped that energy prices will have come down to more reasonable levels. It will hopefully be warmer by then too!
On that note, we wish you a pleasant Easter weekend, and fingers crossed that the sun will shine.
One million eligible claimant families receiving tax credits, and no other means-tested benefits, will get the first 2023-24 Cost of Living Payment from Tuesday 2 May 2023, HM Revenue and Customs (HMRC) has confirmed.
The £301 UK Government payment will be paid automatically into most customers’ bank accounts between Tuesday 2 and Tuesday 9 May 2023 across the United Kingdom. Only eligible families who receive tax credits and no other means-tested benefits will receive the payment from HMRC.
This is the first of three payments totalling up to £900 for those eligible in 2023-24.
Chief Secretary to the Treasury, John Glen, said: “Higher prices make life difficult for everyone, which is why our priority is to halve inflation this year.
“But we are also going further to support those struggling most, with a total package of support worth an average of £3,300 per household this year and next – including up to £900 in direct cash payments starting next month for families receiving tax credits.”
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “The £301 Cost of Living Payment will deliver vital financial help to eligible tax credit customers across the UK. Further support will be paid in autumn 2023 and spring 2024 to those entitled to payment.
“HMRC will pay eligible tax credit customers automatically and with no action required from the customer, to make this as simple and helpful as it can possibly be.”
The payment will show as ‘HMRC COLS’ in customers’ bank and building society accounts, so that they know the money is cost of living support.
For tax credit-only customers to be eligible for the £301 Cost of Living Payment, they must have received a payment of tax credits in respect of any day in the period 26 January to 25 February 2023, or later be found to have been entitled to a payment for this period.
Eligible customers do not need to apply or contact HMRC to receive the payment.
The Department for Work and Pensions (DWP) recently announced that eligible households receiving DWP means-tested benefits will receive their first 2023-24 payment between Tuesday 25 April and Wednesday 17 May. This includes tax credit claimants who also receive other income-related benefits from DWP.
The payments are part of a package of wider UK Government support announced to tackle the cost of living in 2023-24, including:
· a further £300 Cost of Living Payment for eligible families in autumn 2023, with a payment of £299 in Spring 2024
· a £150 Disability Cost of Living Payment for eligible disabled people to be paid during summer 2023
· a £300 Pensioner Cost of Living Payment to be paid during winter 2023-24.
This means that the most vulnerable can receive up to £1,350 in direct payments over the coming financial year if eligible.
Including both DWP and HMRC payments, the latest Cost of Living Payment will see more than 8 million households across the UK receive their £301 cash boost by mid-May 2023.
The UK Government is offering help for households. Customers should check GOV.UK to find out what support they could be eligible for.
Carer Support Payment from @SocSecScot will improve support for unpaid carers, recognising the vital work they do.
It will be piloted in late 2023 ahead of national introduction in spring 2024.
Read @ScotGov‘s consultation response on the new benefit:
Twelve Scottish Government benefits including Carer’s Allowance Supplement and Best Start Grants will be increased by 10.1% on 1 April, backed by investment of around £430 million.
The Scottish Child Payment was increased by 150% in 2022 to £25 per eligible child per week.Payment Values from 1 April 2023
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Twelve Scottish Government benefits including Carer’s Allowance Supplement and Best Start Grants will be increased by 10.1% on 1 April, backed by investment of around £430 million.
The Scottish Child Payment was increased by 150% in 2022 to £25 per eligible child per week.
A total of 13 Scottish Government benefits are now being delivered through Social Security Scotland, seven of which are only available in Scotland.
Social Security Minister Ben Macpherson said: “We are committing £5.2 billion for social security benefits in 2023-24, providing support to more than one million people in Scotland. This is £776 million above the level of funding we are forecast to receive from the UK Government for social security through Block Grant Adjustments.
“The choices we have taken in our Budget represent a significant investment in people and are key to our national mission to tackle child poverty. They will help low-income families with their living costs, support people to heat their homes in winter, and enable disabled people to live full and independent lives. This is money that will go directly to people who need it the most.”
12 Scottish Government benefits will be increased by 10.1% on 1 April 2023. These are:
Scottish Child Payment was increased to £25 per eligible child per week in November 2022. This represented a 150% increase in eight months.
