The DWP has confirmed it is not planning to make any more Cost of Living Payments, ending the series of one-off payments that supported millions between 2022 and 2024
During 2022 to 2024, the Department for Work and Pensions ( DWP ) rolled out a raft of one-off financial support measures to help households weather the storm of the coronavirus pandemic, as they battled escalating living expenses driven by surging energy prices and rampant inflation.
Throughout this timeframe, vulnerable groups including low-income families, pensioners and disability benefit recipients were handed payments between £150 and £326 through the DWP or HM Revenue and Customs (HMRC).
Nevertheless, the DWP has now made it official that no additional payments will be distributed in 2026. A recent GOV.UK update clarifies the DWP’s decision-making process surrounding these payments and explicitly states: “DWP is not planning to make any more Cost of Living Payments.”
The announcement urges anyone facing financial hardship to investigate alternative forms of assistance, including verifying eligibility for unclaimed benefits. It additionally alerts at-risk individuals to be vigilant against fraudsters dispatching texts or emails requesting applications or contact regarding cost of living support, reports Chronicle Live.
The official guidance cautions: “If you have had a message asking you to apply or contact someone about the payment, this might be a scam.”
Fresh information explaining the DWP’s payment criteria has also been published, outlining how data analysis was employed to pinpoint and remunerate those qualifying for Cost of Living Payments. For those convinced they ought to have been handed any of the one-off payments distributed between 2022 and 2024, official guidance explains: “If you are not content with this decision you can contact us to ask us to explain how the decision was made. You, or someone who has authority to act for you, can do this by writing to or phoning the office who pays your qualifying benefit.
“Tell us if you think we have overlooked something, or you have more information which might change the decision. You can do this by phoning the office that pays for your qualifying benefit.”
The low income benefits and Tax Credits Cost of Living Payments – totalling £326, £324, £301, £300 and £299 – were distributed to qualifying claimants receiving income-based support, encompassing Universal Credit, Tax Credits and Pension Credit.
Meanwhile, Disability Cost of Living Payments amounting to £150 (distributed on two occasions) reached millions receiving Personal Independence Payment (PIP), Adult Disability Payment, Attendance Allowance, Disability Living Allowance and various other disability benefits.
Pensioner Cost of Living Payments – either £150 or £300 – were granted to eligible individuals beyond State Pension age who qualified for Winter Fuel Payment. This cost of living support supplemented the yearly heating assistance from the DWP, potentially reaching up to £600 across the winters of 2022/23 and 2023/24.
As households nationwide grapple with soaring energy bills, worsened by winter weather and fluctuating inflation rates, the dawn of the new year presents a prime opportunity to hunt for unclaimed benefits or discounts.
Spare just 10 minutes to utilise one of the free, confidential online benefit calculators for a potential income boost before summer rolls around. While an online benefits calculator isn’t a magic wand for financial troubles, it can offer a fairly accurate estimate of what you might be eligible to claim – but remember, it’s up to you to submit the application.
Who should check for unclaimed benefits or discounts?
There’s a broad spectrum of benefits and payments worth checking for.
You should check if:
- you are temporarily unable to work, including because of ill health
- you are of working age on a low income
- You are over State Pension age on a low income
- you have been made redundant
- you are looking for work
- you are raising a family
- you have a child who is disabled or has a health condition
- you are disabled or have a health condition
- you’re caring for someone
- you have lost a loved one
What is an online benefits calculator?
Online benefit calculators swiftly determine if you’re missing out on any benefits and best of all, they’re entirely free, independent, and confidential to use – so there’s nothing to lose.
In just a few moments, you could discover how much extra support you may be able to claim, simply by inputting details about yourself, your residential status, your employment status, and any savings you have.
You can use an independent benefits calculator to find out:
- What benefits you could get
- How to claim
- How your benefits will be affected if you start work
The benefits calculators below provide information on income-related benefits, Council Tax Reduction, Carer’s Allowance, Universal Credit, and how your benefits will be affected if you start work or change your working hours.
What you will need before you start
Assemble the following information prior to starting and the entire process should take approximately 10 minutes:
- Savings
- Income, including your partner’s
- Existing benefits and pensions – including anyone living with you
- Outgoings – such as rent, mortgage, childcare payments
- Your latest Council Tax bill
