Cost of living payment: Pensioners to get extra £324 but only if they claim DWP benefit | Personal Finance | Finance
Those of state pension age who claim Pension Credit are entitled to claim the Government’s premier cost of living payment. This is part of a wider £650 which was split into two separate parts with the first instalment being delivered earlier this year. Next month, the second £324 will be handed out to those in receipt of Pension Credit as well as those who claim other benefits.
What is the cost of living payment?
The overall amount of £650 is reserved for those who claim means-tested benefit payments from the DWP.
It was created to help low income households with the rising cost of living which has been caused by a soaring inflation rate and the ongoing energy crisis.
Means-tested benefits are for people who can prove their income or savings are below a certain level.
As Pension Credit tops up the income of state pensioners on low income, recipients of this DWP are eligible for this £324 payment.
READ MORE: 70 health conditions qualify for extra £156 a week in PIP from DWP
Who else is eligible for the £324 payment?
Outside of Pension Credit, many other benefit payments qualify someone for the Government’s cost of living support.
Among the other qualifying DWP payments are:
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Universal Credit.
DON’T MISS
When will this be paid?
The Government has confirmed that the £324 cost of living payment will be rolled out of those eligible from November 8, 2022.
This transaction of payments to Pension Credit claimants and other DWP recipients will continue until November 23.
Each amount of £324 will automatically be paid into the bank accounts of those eligible in England, Scotland, Wales and Northern Ireland.
As a result, pensioners will not need to do anything to receive the money but should reach out to the DWP if they believe they have missed out on it.
READ MORE: Paramedic shares how she dishes up tasty meals costing 68p per portion
Chloe Smith, the Work and Pensions Secretary, shared why it is important for people to check their eligibility for the Government’s cost of living support.
Ms Smith explained: “Millions of families will soon see a £324 cash boost as part of our extensive £1,200 support package, helping to raise incomes and manage the rising cost of living.
“We understand that people are struggling which is why and we’re committed to supporting the most vulnerable households.
“That’s also why we are focused on driving growth and delivering quality public services so we can continue to support those in need through these challenging times while boosting opportunity for all.”
Chancellor Kwasi Kwarteng added: “We know that people have been worried about their bills ahead of this winter, which is why we’ve taken decisive action to hold down energy bills, saving the average household around £1,000 a year, and provided £1,200 of targeted support to the most vulnerable.
“Without our intervention, analysts were predicting that the average annual energy bill could have reached £6,500 next year. We were never going to let this happen.
“Our Growth Plan will also leave more money in people’s pockets and, over the longer term, help drive economic growth – the only way to permanently boost everyone’s living standards.”
