Urgent warning as households on Universal Credit could miss out on £301 cost of living payment – are you affected?

HOUSEHOLDS on Universal Credit could miss out on the £301 cost of living payment, according to new guidance.

The Department for Work and Pensions (DWP) has issued an update on the scheme and said that those receiving a "nil award" during the qualifying period won't get the free cash.

Updated guidance on the DWP website says: "You will not be eligible for the Cost of Living Payment if your benefit is reduced to £0 for the qualifying period. This is sometimes called a nil award."

We asked the DWP how many Universal Credit claimants will miss out because of this rule but it said it doesn't hold any recent figures.

During the roll-out of last year's £650 cost of living payment, some 551,000 with a nil award missed out on the first instalment worth £326.

The latest guidance comes as millions are set to receive a £301 cost of living payment within weeks, but not everyone will get the cash.

The payment forms part of the first instalment of the Government's £900 cost of living payment for those on specific benefits including Universal Credit, Pension Credit and income support.

The money is being split into three instalments to be paid in April, Autumn and Spring 2024.

The first payment will be hitting people's bank accounts from Tuesday, April 25 until Wednesday, May 17.

Over eight million people will have the cash paid automatically and don't need to apply for it.

You'll be eligible for the payment if you were entitled to the following benefits between January 26 and February 25:

• Income-based jobseeker’s allowance
• Income-related employment and support allowance
• Income support
• Pension credit
• Child tax credit
• Working tax credit
• Universal Credit

And 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.

If you miss out on the payment due to your Universal Credit going down to £0, this may be due to any of the following reasons:

• You got more than one payment of earnings in your Universal Credit assessment period
• Your or your partner’s earnings went up
• Your or your partner’s savings went up
• You started getting another benefit
• You got a "sanction" because you did not do something you agreed in your claimant commitment

But you may still be eligible for the free cash if your benefit is reduced to £0 and one of the following applies:

• Money was taken off your benefit for other reasons, such as payments of rent to your landlord or for money that you owe
• You had a hardship payment because you got a sanction and could not pay for rent, heating, food or hygiene needs

Other benefits that don't qualify for the £301 one-off cost of living payment include:

• Attendance allowance
• Carer's allowance
• Child benefit
• Disability living allowance (DLA)
• Contributory, or "new style", employment and support allowance (ESA)
• Guardian's allowance
• Contribution-based, or "new style", jobseeker's allowance (JSA)
• Maternity allowance
• Personal independence payment
• State pension
• Statutory adoption, maternity, paternity and shared parental pay
• Statutory sick pay

What other help is coming?

Millions of people with disabilities and pensioners will receive cost of living payments worth up to £300 later this year and into 2024 too.

Over six million people will receive a £150 disability cost of living payment this summer.

You may be entitled to the payment if you receive any of the following benefits:

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

Millions of pensioners will receive a £150 or £300 cost of living payment from November this year too.

You will be eligible for the payment if you are entitled to a Winter Fuel Payment for winter 2023/24.

Effectively, the cost of living payment will top up your Winter Fuel Payment.

Eligible households will be sent a letter in October or November telling them how much their total payment is.

In some circumstances, you might be eligible for all three cost of living payments.

That means you will get £1,350 free cash from the government.

Beyond the cost of living payments, extra help is coming via the Household Support Fund, which has been extended until March 31, 2024.

The Fund is a central pot of money from the government that is shared between local councils in England.

They then decide who to distribute the money to, and how to.

It can come in the form of a voucher, or a direct cash payment into your bank account.

In most cases, the support is offered to those on a low income or certain benefits.

You should check with your local council if you are eligible for any support.

If you don't know what council area you fall under, you can use the Government's council locator on its website.

Meanwhile, here are seven loopholes that could stop you from getting the cost of living payment.

Plus, more information on who will be getting the payments and when.