The Government has confirmed when the third and final low-income cost of living payment will be given out.
The grant is being sent to more than eight million of the country’s most vulnerable households as the UK continues to battle high energy prices and inflation.
The first payment, of £301, was made between April and May, before a second instalment of £300 was sent to people in October and November.
When is the next cost of living payment?
The Government has confirmed that the final payment, of £299, will be paid between 6 and 22 February 2024. It is tax-free, will not count towards the benefit cap, and does not have any impact on existing benefit awards.
You do not need to apply for the payment. If you are eligible, you should receive it automatically.
Work and Pensions Secretary Mel Stride said: “We will always protect the most vulnerable, while ensuring fairness for the taxpayer.
“We know that the best way to secure long-term financial security is through employment, so we’re rolling out the next generation of welfare reforms to put thousands more people on a pathway off benefits and into work.”
After this final instalment, no further cost of living payments are currently scheduled.
Who is eligible for the payment?
The grant is being paid to people who receive the following benefits:
- Universal credit;
- Income-based jobseeker’s allowance;
- Income-related employment and support allowance;
- Income support;
- Pension credit;
- Working tax credit;
- Child tax credit.
People must have been entitled to a payment for a qualifying benefit during a certain assessment period to be eligible for the payment. This assessment period will be announced closer to the time.
For previous payments, the assessment period has been two months prior to the payment dates.
People will not be eligible if their qualifying benefit is reduced to nil for the qualifying period. This is sometimes called a “nil award”. Reasons a benefit may be reduced to £0 include:
- 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.
You may still be eligible for the payment if your benefit is reduced to nil and money was taken off your benefit for other reasons, such as payments of rent to your landlord or for money that you owe, or if you had a hardship payment because you could not pay for rent, heating, food or hygiene needs.