DWP answers Labour MP on whether cost of living payments will be extended

The DWP has confirmed that there are no plans to extend cost of living payments beyond the department’s current deadline in spring next year.

More than eight million people have already received their £300 payments for the autumn of this year automatically between October 31 and November 19.

A fresh payment of £299 will be paid to people claiming a variety of benefits, but Chancellor Jeremy Hunt did not mention the scheme in his Autumn Statement on November 22.

This led Labour MP Sir George Howarth to ask the DWP whether there were “plans to extend cost of living payments beyond the spring”.

DWP Minister for Social Mobility, Youth and Progression Mims Davies MP has now signalled that the payments are set to end.

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Ms Davies said: “There are currently no plans to extend the cost of living payments beyond the Spring.

“Cost of living payments enabled us to target further support during the rising cost of living pressures. Delivering lump sum payments got support faster to those who needed it, reflecting our commitment to providing direct and timely relief to those who need it most.”

The MP pointed out that inflation has now slowed and said that the DWP has uprated certain benefits to reflect increasing costs.

She said: “The Secretary of State (Mel Stride MP) has completed his annual statutory review of pensions and benefits and his decisions were announced to Parliament on 22 November. From April 2024, Universal Credit amounts will be up-rated by 6.7%”.

The third and final cost of living payment will be handed out to people on the following benefits:

  • Universal Credit
  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Working Tax Credit
  • Child Tax Credit
  • Pension Credit

To be eligible for the payments, you must have been entitled to a payment for a qualifying benefit between August 18 2023 and September 17 2023, or have been eligible for payment for an assessment period during that time.

Sir George also urged the department to extend cost of living payments to people claiming housing benefits and council tax reduction, but Ms Davies MP said there are no plans to do so.

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