£650 cost of living payment not arrived? 8 reasons why first instalment hasn’t arrived yet

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Woolwich residents talk about the impact of cost of living

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The first instalment, of £326, was meant to start landing in people’s accounts from July 14, but some may be wondering why their money is yet to arrive. There are several reasons why the funds may not yet have arrived.

1. Staggered payments

Due to the volume of payments, not everyone will receive the cash at the same time.

Payments will be issued at staggered times, although not by benefit type, starting on July 14.

A benefit claim is unique

Most of the payments should be completed by the end of July.

However, there may be some delays for a small number of cases, where a claim has unique characteristics.

READ MORE: State pensioners may be able to increase sum by up to £14.75 weekly

3. Tax credits

People on Working Tax Credit or Child Tax Credit receive these benefits from the HMRC rather than the DWP. They will receive their payments later, to avoid duplication. Those who only receive tax credits will get their first instalment from autumn 2022 and the second part from winter 2022.

People who get Child Tax Credit and Working Tax Credit will receive just one cost of living payment for Child Tax Credit only.

If you get tax credits from HMRC as well as another qualifying low-income benefit from DWP, such as Universal Credit, you will get a cost of living payment from DWP only and won’t have to wait until autumn.


4. Outside the entitlement period

To get the first cost of living payment of £326, a person must have been entitled to a payment (or later found to be entitled to a payment) of Universal Credit for an assessment period that ended from April 26, 2022 to May 25, 2022.

Alternatively, a person must have been entitled to a payment (or later found to be entitled to a payment) of income-based JSA, income-related ESA, Income Support or Pension Credit for any day in that same period.

People on tax credits must have received, or later receive, for any day in the period, a payment of tax credits, or an annual award of at least £26 of tax credits.

The Government will later announce the qualifying dates to get the second payment of £324.

5. ‘Nil award’ of Universal Credit

A person will not be eligible for the payment if their earnings reduced their Universal Credit to £0 for the qualifying assessment period.

This is sometimes called a ‘nil award’. Those who have had money taken off for other reasons, such as rent payments, may still be eligible.

6. A person received their benefits late

Payment may come later if a person was awarded a qualifying benefit at a later date.

They will still be paid the cost of living payment automatically and do not need to contact anyone.

7. Changes to payment account

The payment will be made into the same account where a claimant usually receives their benefits or tax credits.

Changes to this by closing the account, switching it to a different bank, or asking for benefits to be paid into a different account, could affect the payment process. Claimants should make sure to inform the DWP of any account changes as soon as they can.

8. Do not qualify

Only people on specific benefits will get the funds.

The DWP said: “You will not get a payment if you get New Style Employment and Support Allowance, Contributory Employment and Support Allowance, or New Style Jobseeker’s Allowance, unless you get Universal Credit.”

Anyone considering a move on to Universal Credit is urged to check with welfare agencies whether they’ll end up better off or not in the long run.

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