MILLIONS of households will get £299 of free cash from next week and should look out for a specific code.
Households on defined benefits will receive a second cost-of-living payment directly into their bank accounts from 6 February.
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Millions of households will receive a free £299 in cash from next week
The money is distributed until February 22.
It will be automatically deposited into the bank accounts of those who qualify for the tax-free payment.
However, depending on certain criteria, some will be paid by HMRC, while others will be paid by the DWP.
With this in mind, below are the exact codes to look out for when making a payment to your bank account.
The payment reference will be the recipient’s National Insurance number followed by the DWP COL or HMRC COLS.
For example, if your NI number is JT 83 42 97B, your payment will show as “JT 83 42 97B DWP COLP” or “JT 83 42 97B HMRC COLP” on your bank statement.
Britons are being reminded not to panic if their money doesn’t arrive by February 6.
The £299 payout is distributed to over eight million people over 17 days, so yours may take longer than others.
The first grant of £900, worth £301, was paid out to more than eight million households in April and May.
The second installment, which was £300, was paid from 31 October to 19 November.
It follows a £650 living expenses payment for more than eight million people in 2022.
The DWP is also encouraging pensioners on low incomes who are not yet receiving Pension Credit to check their eligibility.
Successful Pension Credit claims can be up to three months old, meaning thousands more could still qualify for the final cost of living payment, as well as the third payment due in February.
Who is entitled to cash for living expenses?
The full list of benefits that qualify people for payment is:
- Universal credit
- Income-based jobseeker’s allowance
- Income-related Employment and Maintenance Allowance
- Income support
- Working tax credit
- Child tax credit
- Pension credit
You must be eligible to receive any of the above qualifying benefits between November 13 and December 12 to be eligible for the free cash.
If you are later found to be entitled to any of the above benefits between the same dates, you will also be entitled to the payment.
Households with only tax relief will receive a payment from HMRC after the others have been paid by the DWP.
This is to ensure that those on other benefits and tax credits do not get paid twice.
What more help is coming?
If you are not eligible for the £299 Living Cost Payment, or even if you are eligible and still need help, there is other support on offer.
A household support fund is one possibility. It is worth £842 million and is shared between councils in England.
Then they decide how to distribute their share.
But what you’re entitled to depends on where you live as each local authority sets its own eligibility criteria.
In the vast majority of cases, you’ll qualify if you’re on benefits or have a low income or financial hardship.
You should contact your council and see if any help is offered. You can find out which council area you fall under using the government’s online council finder tool.
You could also ask your energy company for free support if you’re having trouble paying.
British Gas, Octopus Energy and EDF are some of the biggest companies offering help.
Eligibility requirements vary by company, but you’ll usually need to provide evidence that you’re in energy debt or facing fuel shortages.
The government classifies fuel poverty as when a household has to spend a “high proportion” of its income to keep the temperature at a reasonable level.
It’s worth checking if you’re eligible for benefits too, after the latest figures from think tank Policy in Practice revealed that £19bn worth of support goes unclaimed every year.
There are several free online calculators you can use to find out what you might qualify for:
Not only could claiming benefits earn you extra money from the benefits themselves, but it could also help you qualify for the £299 living expenses payment.
In the meantime, anyone who pays for their energy using a subscription meter could receive a top-up fuel voucher.
It comes through the Fuel Bank Foundation, which provides emergency fuel vouchers to households at risk of running out of credit.
They cost £49 in winter and £30 in summer, when demand for heating is lower.
You can apply through your local council which you can find using the Government’s council finder tool.
Do you have a money problem that needs to be solved? Get in touch by emailing [email protected].
Additionally, you can join our Sun Money Chat & Advice Group on Facebook to share your tips and stories.
Categories: Optical Illusion
Source: HIS Education