Cost of living payment: DWP confirms exact date final £299 instalment will arrive in your bank

The government has confirmed the exact date millions across the UK will receive the third and final cost of living payment. The Department for Work and Pensions (DWP) announced on Wednesday (December 13) that around eight million households will receive the £299 instalment in February 2024.

It is the last of three means-tested cost-of-living payments being made over 2023/24, worth up to £900 in total. Those eligible include low-income individuals and families in receipt of either tax credits or five means-tested DWP benefits.

Eligible claimants do not need to apply or take any action to get the payment. The £299 instalment will be sent automatically by the DWP and HM Revenue and Customs (HMRC). Here's everything you need to know.

When will the next cost of living payment be paid?

The third and final instalment of the £900 payment will be made in February 2024. Eligible claimants of qualifying benefits from DWP will be paid between February 6, 2024 and February 22, 2024. Eligible claimants on Tax Credits-only from HMRC will be paid between February 16, 2024 - February 22, 2024.

The reason the instalments are a slightly different amount each time to make it easier for the Department for Work and Pensions (DWP) and HMRC to track which grants people have received and in order to minimise fraud or scam risks.

Recipients of both Child Tax Credit and Working Tax Credit will receive a cost of living payment for Child Tax Credit only, paid by HMRC.

You do need to apply for the payment or do anything in order to receive it as it will be sent out directly to recipients who are eligible. The payment, which is tax-free and does not have any impact on your existing benefits, should show up on your bank statement as “DWP COL” or “DWP COLP”.

Who is eligible for the cost of living payment?

You are eligible for the £900 cost of living payment if you are claiming the following benefits:

• Universal credit
• Income-based jobseeker’s allowance
• Income-related employment and support allowance
• Income support
• Pension credit
• Working tax credit
• Child tax credit

The assessment period for these payments ran from between November 13 and December 12 2023. The Government advises that if your benefit was reduced to £0 during this period, also known as a “nil award”, you will not be eligible for the cost of living payment.

For more information visit the Gov.uk website.