The first payment, worth £326, will start automatically hitting the bank accounts of those claiming income-based benefits, including those in receipt of Universal Credit, Jobseeker’s Allowance, Employment and Support Allowance, Income Support and various tax credits. Although payments will begin on Thursday 14 July, some may find that their payments will not be completed until the end of the month. it was previously reported that millions of people would not receive their payments for up to two weeks due to the need to scale more than eight million remittances over several weeks for the system to cope. A small percentage of others may find that payments are delayed even further due to complex arrangements or other complications. Below, I’ve put together the latest advice for those who may find their living costs payment has been delayed.
What should I do if my payment has not been completed?
If your payment does not appear promptly on July 14th, it may still be on the way due to staggered payments. You’ll have to wait until the end of July to see if it shows up, as that’s when the majority of claimers will be paid. The grant of £326 should appear on your bank statement as ‘DWP XB’, the code used to record the payment. If nothing has turned up by the end of the month, it may be worth contacting the DWP then – unless you’re only claiming tax credits. “If you think you’re due a payment and you haven’t received it by the end of July, contact the department that normally pays the benefit and ask why you haven’t had the money,” says Sarah Coles, personal finance expert at Hargreaves. Lansdowne.
Why might it be delayed further?
There are a few other factors that may delay your payment from appearing. First are those with “complex” circumstances, which may include claimants who have recently died or other unique circumstances. Those in this category should await further guidance. The DWP points out that these situations represent only a small proportion of those expecting a cost of living payment. “The government has said there may be a delay for some people with more complex conditions, but so far it has not given any detail about what kind of complexity it has in mind or what that delay might be,” advises Ms. Coles. Another category is those who have recently closed their bank account which has normally received their benefit payments. The DWP will use the bank account details they currently have on file, so if you haven’t already told staff you have a new account, you should do so now. Failure to do so means your original payment may be declined. If so, the DWP will contact you to ensure it is paid, but it will lead to delays.
What if I claim tax credits?
Those claiming tax credits along with other benefits will not be paid their first cost of living grant until the autumn in order to “avoid duplication” of payments. This includes those in receipt of Working Tax Credit, Child Tax Credit and Pension Credit. You must have received or be entitled to payment at some stage between 26 April and 25 May to be eligible via this route. If you qualify, you don’t need to apply either – the £650 will be given to you automatically, just with a delay. The second payment is scheduled to be paid in winter 2022.
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“The exception to this is Pension Credit because there are delays in the system,” says Ms Coles. “The right says that if you were entitled to it on May 25 and you start your claim before August 18, you can reroute it for three months, so you will be entitled to the first payment.” The payment is also not available to those in receipt of “contributory or new-style versions of benefits, because these are based on NI contributions rather than your household income”, it adds. The government also advises: “You will not receive a payment if you have already received a living costs payment from HMRC because you were entitled to tax credits.”
What do the DWP and HMRC advise?
Claimants are advised to view the official government cost of living payment portal at the address to view the latest updates. A DWP spokesman said: “We are on track to process the first installment by the end of July, and that has not changed. “All eligible households will automatically receive the first tranche and no one needs to worry about missing out. “There will be some unique cases – such as those who were initially ineligible but became eligible on appeal – who will be paid after July, as soon as possible.”
