Cost of living payments: what you need to know

A £299 cost of living payment was sent to around eight million vulnerable households between 6 and 22 February 2024. If you haven't received the money yet, you'll need to contact the Department for Work and Pensions.

It was the last of three payments worth a total of £900, which were part of a package of support rolled out this financial year. Means-tested benefits claimants began receiving the latest instalment from 31 October and it follows an initial £301 sent between April and May.

A separate £300 was paid to pensioners from 1 November as part of the boosted Winter Fuel Payment, while people with disabilities received a £150 payment in the summer.

Here, Which? explains what the payments are, who they're for and what to do if you think you're eligible but haven't received the payments.

What support is the government offering?

In his 2022 Autumn Statement, Chancellor Jeremy Hunt announced a new package of financial support to ease the squeeze during the ongoing cost of living crisis. The money, however, will only be available for the most vulnerable households. Find out if you're eligible, below.

Cost of living payments

The last of three cost of living payments, worth a total of £900, was sent by the Department for Work and Pensions (DWP) to people claiming means-tested benefits between 6 and 22 February.

Eligible households should have already received the first two instalments of £300 and £301 in the spring and autumn.

To be eligible for the money, you must already be receiving one or more of the following:

• Universal Credit
• Income-based jobseekers allowance
• Income-related employment and support allowance
• Income support
• Pension credit
• Working tax credit and child tax credit

You don't need to apply or contact anyone – if you're eligible, the payment will be transferred automatically into your bank account, separate from your benefits or tax credits.

Boost to Winter Fuel Payment

An extra £300 was paid to eight million pensioners as an increase to the Winter Fuel Payment for 2023 to 2024. This was sent automatically by the DWP from 1 November.

The Winter Fuel Payment is usually between £100 and £300, meaning some eligible pensioners this year could have received a total of £400 to £600 in government support.

• Find out more: benefits and schemes to help pay energy bills

Disability cost of living payment 

A one-off £150 payment was made between 20 June and 4 July to more than six million people with disabilities.

Anyone in receipt of certain disability benefits on 1 April 2023 was entitled and should have already received the payment.

Many pensioners could be missing out

The Department for Work and Pensions (DWP) says nearly 880,000 homes in the UK could get £299 more if they apply for pension credit by Tuesday 5 March. 

Around 1.4 million UK low-income pensioners already receive pension credit - a means-tested benefit that's awarded based on your earnings.

Pension credit is made up of two parts: guarantee credit and savings credit. You may be eligible for one or both, but guarantee credit tops up your weekly income to £201.05 for single people and £306.85 for couples in 2023-24.  

Savings credit on the other hand rewards pensioners for saving towards their retirement, but is only available for people who reached state pension age before April 2016. 

• Find out more: pension credit explained

What if I don't receive the payment?

If you met all the eligibility criteria but haven't received your cost of living support after the payment period has passed, there's a chance something might have gone wrong.

Before you contact the DWP to make a claim, double-check your bank statement for a payment with the reference 'DWP COL' or 'HMRC COLSD' along with your National Insurance number.

If still no joy, then you'll need to fill in this online form.

Watch out for scam messages

Scammers were quick to target people with fake messages and calls following the government's first round of cost of living support last year. Anyone eligible for these new payments should once again be on high alert for fraudsters. 

Scams last year included a text message asking you to claim or apply for the payment, as well as emails asking you to call a fake number to make a claim for the payment.

In January 2023, the DWP issued a warning on social media: 'You do not need to apply for the payment. You do not need to call us. Payment to you is automatic. We will never ask for personal details by SMS or email.'

This echoes guidance on the government's official cost of living website, which says if you receive a suspicious text message or email, you should report it by forwarding it for free to 7726 or sending it to report@phishing.gov.uk.

• Find out more: how to spot a scam.

Get further help with the cost of living

Experts from across Which? have compiled the latest news and advice that can help you navigate the cost of living crisis. Check out our free advice and podcasts to help ease the squeeze on household bills, grocery shopping and more.

This story was first published in May 2023 and has been updated. The last update was to reveal those eligible for pension credit could get the final cost of living payment if they apply by 5 March.