- Written by Kevin Beachy
- Cost of Living Reporter
Image source, Daisy Daisy
Eight million people on means-tested benefits will receive cost-of-living payments in February to help pay high bills – the last payment scheduled.
£299 will be deposited directly into bank accounts, with no claim required, between 6 February and 22 February.
Those on low incomes and those receiving benefits such as Universal Credit are eligible, but should be wary of scams.
A committee of representatives recently questioned whether the payments were sufficient.
In November, a report by the Work and Pensions Committee said the money only provided temporary relief for some and might have been better used to increase benefits instead.
More than six million disabled people received £150 over the summer. Over the winter, more than eight million pensioners will receive an extra £300.
The February payment of £299 is the final of three installments totaling £900, which will be paid within a year.
Work and Pensions Secretary Mel Stride said: “We will always protect the most vulnerable, while ensuring fairness for taxpayers.”
Following this latest payment, no further cost of living payments are currently scheduled, causing some concern among charities.
However, the government has flagged a 6.7% increase in benefits and an 8.5% increase in state pensions, as well as increased financial support for those on benefits and those who rent privately, all of which come into force in April.
Everyone is warned to beware of any scam messages about cost of living payments purporting to be from government agencies. Some are designed to capture personal and financial information.
For legitimate payments, there will be a reference in the recipient’s bank account to their National Insurance Number, followed by a DWP COL, or an HMRC COLS reference for those who qualify through tax credits.
Am I eligible to get the money?
- Funds will be automatically added to the account used to receive benefit payments
- The reference will be the DWP COL, as well as the claimant’s National Insurance number
- To qualify for a payment, you must be in receipt of Universal Credit, Income-Based Jobseeker’s Allowance, Income-Related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit or Pension Credit.
- You must be entitled to receive payment for one of these benefits between November 13 and December 12, or payment for an evaluation period ending between these dates
- Low-income retirees who are eligible for Old Age Pension Credit, but are not claiming it, can still qualify for cost of living payments if they make a successful application for Old Age Pension Credit
- Those who only qualify through tax credits will receive their cost of living payments through the HMRC COLS reference.