Millions of people to receive £300 to their bank accounts from today

31 October 2023 , 00:01

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Mother holding baby son worrying about finances on her laptop (Image: Getty Images/Tetra images RF)

Millions of people will begin to receive a one-off £300 cost of living payment into their bank account from today.

The money is being sent to those claiming certain Department for Work and Pension (DWP) benefits from October 31 until November 19. If you claim HMRC Tax Credits, the cash will come a little later, from between November 10 and November 19.

Around eight million people in total will receive the cost of living cash. To get the payment, you need to be claiming one of the following benefits during the qualifying period. The benefits are:

• Income-based Jobseeker’s Allowance

• Income-related Employment and Support Allowance

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• Income Support

• Pension Credit

• Tax Credits (Child Tax Credit and Working Tax Credit)

• Universal Credit

• Child Tax Credit

• Working Tax Credit

You need to have been entitled to a payment between August 18 and September 17, or entitled to a payment for an assessment period ending between these dates. You may find you later become eligible for the £300 payment if you qualify for a benefit and it is backdated to the qualifying period we’ve mentioned above.

But the DWP has said that those receiving a Universal Credit "nil award" - so £0 - during the qualifying period won't get the free cash. If you’re due the money, it will be sent to your bank account automatically - you don’t need to apply for it.

The payment reference will be your National Insurance Number followed by "DWP COL" or "HMRC COLSD". This is the second of three instalments of cost of living help being given to those on means-tested benefits, totalling £900 altogether.

The first cost of living payment was worth £301 and was paid in April and May this year, while the third and final payment will be worth £299 and is set to be paid in the spring of next year. These payments are tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

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Mel Stride, Secretary of State for Work and Pensions, said: “The best way we can boost bank balances is by bearing down on inflation, but as we get there, we are ensuring the most vulnerable households are cushioned from high prices with a further cost of living payment.

“Alongside this, thousands of work coaches across the country are helping find work, increase their hours and boost their skills. I encourage anyone who wants to progress their career and strengthen their finances to visit their local Jobcentre to find out what help is available.”

If you're not entitled to the £300 payment, you may be able to receive up to cost of living help if you're in a pensioner household. The Winter Fuel Payment is normally worth up to £300, depending on your living arrangements and circumstances, but the Government is adding an extra £300 pensioner cost of living payment on top to help with rising bills.

Levi Winchester