National rollout of Cost of Living Payments gets under way

OVER eight million households across the UK are starting to receive a £301 Cost of Living Payment (COLP) from today (Tuesday) onwards.

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.

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.

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, commented: “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.”

UK Government Minister for Scotland John Lamont added: “Almost 700,000 low-income households across Scotland will benefit from this support from the UK government, with more to follow for eligible disabled people and pensioners later this year.

"This underlines the UK government’s commitment to supporting the most vulnerable with the cost of living across Scotland and the whole United Kingdom.

“This builds on the extensive support that was delivered to Scottish households last year, along with further measures to deliver on our five priorities, including halving inflation and growing the economy."

People will be eligible for the COLP if they have been entitled to a payment for one of seven benefits between January 26 and February 25, 2023.The eligible benefits are: Universal Credit; Pension Credit; Income-based Jobseekers Allowance; Income-related Employment and Support Allowance; Income Support; Working Tax Credit; Child Tax Credit.

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 May 2-9 to one million eligible families receiving tax credits only, with the banking reference ‘HMRC COLS’.