When will the £900 cost of living payment be paid and is it direct to bank accounts?

MILLIONS will receive a £301 free cash payment to help with the cost of living from today (April 25).

It is the first instalment of three which will all be made by spring 2024 and worth £900 in total.

The £900 is being paid by the Department for Work and Pensions (DWP) to help soften the blow of high energy bills, food and other costs.

It’s part of £1,350 support scheme from the government which Jeremy Hunt unveiled in his Autumn Budget.

Here’s everything you need to know about the payment.

What is the £900 cost of living payment?

The £900 cost of living payment is a support payment being made to households in the UK that are struggling the most.

The payment is tax-free and will not impact any existing benefit payments you receive.

More than eight million people in total will receive the payment.

How and when will the £900 be paid?

Unlike last year’s help, this cost of living payment will be paid in three, not two, instalments.

There’s no need to apply for the help – instead, the DWP will be in touch.

The first payment, which will be £301, will be paid directly into bank accounts between April 25 and May 17.

For those receiving the £301 payment from the DWP, it will show in your bank account as “DWP COLP” along with your National Insurance (NI) number.

For example, if your NI number is JT 83 42 97B your payment will show up as “DWP COLP JT 83 42 97B” on your statement.

The £301 payment is the first out of three that will be made – the remaining two, worth £300 and £299 will be made this autumn and in spring 2024 respectively.

Am I eligible for the £900 payment?

The full list of benefits that qualify people for the payment is:

• Universal Credit
• Income-based Jobseekers Allowance
• Income-related Employment and Support Allowance
• Income Support
• Working Tax Credit
• Child Tax Credit
• Pension credit

If you were receiving any of the above benefits between January 26 and February 25 this year you will receive the £301 payment.

If you were later found to be entitled to any of the above benefits between January 26 and February 25 you will be eligible for the payment too.

The DWP said those on tax credits only will receive their payment from HMRC after the DWP payments begin.

For those in this situation, payments will be made between May 2 and May 9.

Check what benefits you could be entitled to

Millions are entitled to benefits but aren’t claiming them. They could make you eligible for the £900 cost of living payment too.

The quickest way to see what benefits you may be able to claim is to use one of the three benefit calculators recommended by gov.uk.

Each one is free to use. They are: 

• Turn2us
• Policy in Practice
• EntitledTo

Before using the tools, make sure you have key financial information to hand, such as bank and savings statements, and information on pensions and existing benefits.

If you live with a partner or family, get their basic financial information together too as this could affect your claim.

For each of these, you’ll be asked information about your circumstances, such as your current employment and income.

You’ll also need to give information about yourself, including your age and who you live with.

You can then use the contact information on Gov.UK to get the ball rolling and apply for what you’re owed.

Of course, the tools only provide an indicator of what benefits you can claim – and usually don’t include means-tested benefits, so you may be entitled to even more.

What else is part of the cost of living support?

Millions will be in line for part of £1,350 though some could qualify for it all.

It’s rare that households will qualify for all three payments but if you do, you’ll get the .

For example, if you claim pension credit and attendance allowance and are eligible for the winter fuel payment you’ll get the full amount.

As part of the £900, a second payment of £300 and a third payment of £299 will be made.

Payment windows for the £1,350 payment will be broadly as follows:

• £301 – First Cost of Living Payment – during Spring 2023
• £150 – 2023 Disability Payment – during Summer 2023
• £300 – Second Cost of Living Payment – during Autumn 2023
• £300 – 2023 Pensioner Payment – during Winter
• £299 – Third Cost of Living Payment – during Spring 2024

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk