The Department for Work and Pensions (DWP) has responded to concerns that thousands of people could miss out on the final £299 cost of living payment due to a technicality involving dual paydays in a Universal Credit assessment period.
The payment, the third and last instalment of the £900 support package, is due to be paid between February 6 and February 22 to around eight million claimants of means-tested benefits. Eligibility is based on entitlement to a qualifying benefit between November 13 and December 12, 2023.
However, individuals whose benefit award is reduced to £0 during that period will not receive the payment. This can happen if two wage payments fall within a single Universal Credit assessment period, artificially inflating income. Figures show that 500,000 Universal Credit households missed a similar payment in 2022 due to this issue.
Liberal Democrat MP Wendy Chamberlain raised the matter in Parliament, urging a review of the eligibility process. In response, Work and Pensions Secretary Mel Stride said the issue is a long-standing one that occurs every few years, and the Government does not intend to take specific action. He added that the Government trusts people to manage their finances to cope with occasional extra paydays.
The DWP confirmed that recipients do not need to have received the previous £301 and £300 payments to qualify for the final £299. Eligible benefits include Universal Credit, Pension Credit, and others. The full list is available on the government website.
