DWP announces update on extending cost of living eligibility criteria to more claimants | Personal Finance | Finance newsbhunt


The Department for Work and Pensions has announced its decision on whether cost of living payments given to struggling households next year will be extended to others currently not included in the scheme’s criteria.

There have been calls for additional financial support to ease the ongoing struggle with everyday costs.

The DWP has handed out multiple cost of living payments to help struggling Britons with bills over the Christmas people and many people wonder if this will continue for the year ahead.

More than 8 million people across England received the £300 autumn cost of living payment.

A third payment worth £299 is due to be paid next spring.

In October, Tom Pursglove, DWP Minister of State for Disabled People, Health and Work, said they had been assessing whether any more help was needed.

He said: “There is ongoing work to review the cost of living payments that the Government has made available in the current climate. I anticipate that the results will come forward over the autumn and inform future decisions that we make.”

However, there was no mention of future cost of living payments in the Autumn Statement.

Sir George Howarth, Labour MP for Knowsley, has now asked the DWP if there are any plans in the pipeline for extra support beyond the £299 spring payment.

Mims Davies, Parliamentary Under Secretary of State at the DWP, said in a written response: “There are currently no plans to extend the cost of living payments beyond the Spring.

“Cost of living payments enabled us to target further support during the rising cost of living pressures. Delivering lump sum payments got support faster to those who needed it, reflecting our commitment to providing direct and timely relief to those who need it most.

“The rate of inflation has slowed, and we have been able to implement uprating to other benefits in the meantime to reflect increased costs.

This includes increasing benefits and the State Pension by 10.1 percent in April 2023 in line with inflation. The Secretary of State has completed his annual statutory review of pensions and benefits and his decisions were announced to Parliament on November 22. From April 2024, Universal Credit amounts will be up-rated by 6.7 percent.”

In a separate question, Labour MP, Sir George Howarth urged the DWP to amend current cost of living payment eligibility criteria to include people on Housing Benefit and Council Tax Reduction.

However, Ms Davies replied in another written response: “There are currently no plans to amend eligibility criteria for cost of living payments.

“Housing Benefit is not an income-replacement benefit; it is intended to cover only housing costs. Therefore, Housing Benefit is not a qualifying means-tested benefit for the cost of living payment.”

The cost of living payments will be given to those on eligible benefits including

  • Income-based Jobseeker’s Allowance (JSA)
  • income-related Employment and Support Allowance (ESA)
  • Income Support
  • Pension Credit
  • Universal Credit
  • Child Tax Credit
  • Working Tax Credit

The payment will be made separately from your benefit payments.


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