In response to the soaring cost of living, the UK government introduced targeted financial aid through the Department for Work and Pensions (DWP). Among these measures, the Cost of Living Payment stood out as a vital source of support for individuals and families grappling with rising expenses on essentials like housing, utilities, and groceries. This initiative was especially crucial in 2023 and early 2024, a period marked by high inflation and widespread financial uncertainty.
The final instalment of this scheme for the 2023/24 financial year was a £299 payment, part of a broader effort to provide phased financial relief to vulnerable households.
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Payment Schedule
The DWP structured the Cost of Living Payment to be disbursed in increments throughout the year. Each instalment was carefully timed to offer financial support when recipients were likely to feel the pinch of rising costs. Here’s a breakdown of the payment schedule:
Amount | Eligible Benefits | Payment Dates |
---|---|---|
£301 | Universal Credit, Income-based JSA, ESA, Income Support, Pension Credit | 25 April–17 May 2023 |
£301 | Tax Credits only | 2 May–9 May 2023 |
£300 | Universal Credit, Income-based JSA, ESA, Income Support, Pension Credit | 31 October–19 November 2023 |
£300 | Tax Credits only | 10 November–19 November 2023 |
£299 | Universal Credit, Income-based JSA, ESA, Income Support, Pension Credit | 6 February–22 February 2024 |
£299 | Tax Credits only | 16 February–22 February 2024 |
Payments were made automatically to eligible recipients, eliminating the need for applications and reducing administrative complexity.
Eligibility Criteria
To qualify for the £299 instalment, individuals had to receive (or be eligible to receive) one of the following benefits for at least one day between November 13, 2023, and December 12, 2023:
- Universal Credit (except for those with a ‘nil award’)
- Income Support
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Child Tax Credits
- Working Tax Credits
This approach ensured that the payments targeted households most affected by rising living costs, particularly those reliant on low-income welfare benefits.
Missing Payments
In some cases, beneficiaries did not receive their expected payments. The DWP addressed this by providing an online reporting form on the Gov.uk website. To report a missing payment, individuals needed to provide:
- Full name
- Date of birth
- National Insurance number
Responses to these queries were typically processed within two weeks, streamlining the resolution process for affected individuals.
Payments
As of early 2024, no further instalments under the Cost of Living Payment scheme had been announced. However, other measures were in place to provide ongoing relief:
- Benefit Increases: Universal Credit and other benefits were set to rise by 6.7% from April 2024, reflecting inflation adjustments.
- Pension Corrections: Nearly 200,000 pensioners were expected to receive back payments averaging £5,000 due to underpayment errors identified by HMRC.
These measures aim to sustain financial stability for vulnerable households beyond the Cost of Living Payment program.
Support
The DWP’s Cost of Living Payments played a crucial role in mitigating the financial hardships caused by inflation. By targeting low-income households and providing incremental support, the government sought to alleviate the pressures of rising costs while ensuring funds reached those who needed them most.
Although the program’s final instalment has been disbursed, ongoing benefit adjustments and targeted measures reflect a continued commitment to supporting UK households during challenging times.
FAQs
What was the last Cost of Living Payment?
The final payment was £299, issued in February 2024.
Who was eligible for the £299 payment?
Recipients of benefits like Universal Credit, Pension Credit, and Tax Credits.
How were payments made?
Payments were automatic; no application was required.
What if I didn’t receive my payment?
Report it via the DWP’s online form on Gov.uk.
Are more payments scheduled for 2024?
No new payments are planned, but benefits will increase by 6.7%.