The Department for Work and Pensions has announced the rollout of new cost of living support payments to help vulnerable households cope with rising prices.
Millions of eligible households across the UK are set to receive £98 payments as part of the government’s ongoing commitment to support those most affected by inflation and high energy costs.
This latest round of financial support comes at a crucial time for many families who continue to struggle with everyday expenses despite the recent slowdown in inflation rates.
The payments are specifically targeted at those receiving certain benefits and on low incomes, with the government aiming to ensure help reaches those who need it most during these challenging economic times.
If you’re wondering whether you might be eligible for this financial boost, this comprehensive guide will walk you through everything you need to know about the payment, eligibility requirements, how to apply, and when you can expect to receive the money.
What Are the £98 Cost of Living Support Payments?
The £98 cost of living support payments represent the government’s recognition that many households continue to face financial hardship despite broader economic improvements.
These payments are non-repayable, meaning recipients won’t need to pay this money back at any point.
The support is part of a broader package of measures designed to help cushion the impact of rising prices on essential goods and services that have affected households across the country.
Unlike previous cost of living payments which were often higher but less frequent, this new approach aims to provide more regular support to help with ongoing expenses.
The payments will be made automatically to eligible households, meaning most recipients won’t need to apply or fill out any additional paperwork to receive the money.
This streamlined approach ensures that vulnerable households can access support without navigating complex application processes during already stressful financial circumstances.
Who Is Eligible for the £98 Payments?
Eligibility for the £98 cost of living support payment is primarily based on receipt of qualifying benefits and your household income.
Those receiving any of the following benefits during the qualifying period may be eligible:
- Universal Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
However, simply receiving one of these benefits doesn’t automatically guarantee eligibility, as there are additional criteria that must be met.
For Universal Credit recipients, you generally need to have received a payment for an assessment period that ended during the qualifying window, which the government has set as the previous month.
Those on tax credits must have received a payment of tax credits or have received an annual award of at least £26 of tax credits for the qualifying period.
Pension Credit recipients need to have been entitled to a payment during the qualifying period, even if that payment was £0 due to income or savings rules.
It’s important to note that those who receive only New Style ESA, New Style JSA, or Contributory ESA without any of the qualifying benefits listed above will not be eligible for this particular payment.
The government has also confirmed that households receiving Housing Benefit only, without any other qualifying benefits, will unfortunately not be eligible for this specific support payment.
Additional Eligibility Considerations
Beyond the main qualifying benefits, there are several other factors that may affect your eligibility for the £98 payment.
If your benefit was reduced to £0 during the qualifying period (sometimes called a ‘nil award’), you generally won’t be eligible unless this reduction was due to a sanction, deduction for rent or mortgage arrears, or other specific circumstances outlined by the DWP.
Joint claimants will typically receive one payment per household rather than individual payments, so couples claiming together should expect a single £98 payment.
For those who have recently changed benefit types—for example, moving from Universal Credit to Pension Credit—eligibility will depend on which benefit was being received during the specific qualifying period.
There are also special provisions for those who have subsequently died after the qualifying period but who would have been eligible for the payment. In these cases, payments will still be processed and paid to the estate.
If your circumstances have recently changed, it’s worth checking your eligibility as soon as possible, as these changes might affect your entitlement to the payment.
How to Check If You’re Eligible
Determining whether you qualify for the £98 cost of living support payment is relatively straightforward for most people.
The simplest way to check your eligibility is to log into your online account for the benefit you receive, whether that’s through the Universal Credit portal, the Government Gateway for tax credits, or other relevant benefit systems.
Recent benefit statements will often indicate whether you meet the criteria for additional support payments, though this information may not be updated immediately.
You can also contact the relevant department directly:
- For Universal Credit: Use your online journal or call the UC helpline
- For Pension Credit: Contact the Pension Service
- For other benefits: Call the DWP using the contact information on your benefit letters
The government has also set up a dedicated cost of living support checker tool on their website, which can provide a quick indication of whether you might be eligible based on your current circumstances.
If you believe you should be eligible but haven’t received confirmation, don’t panic—the DWP and HMRC often process these payments in stages, so it may simply be that your payment is scheduled for a later date.
Those who receive qualifying benefits from more than one source will only receive a single payment, typically processed through the main benefit they receive.
When and How Will the Payments Be Made?
The rollout of the £98 cost of living support payments has been designed to ensure that eligible households receive support in a timely manner.
The government has announced that payments will begin being issued from the start of the next month, with the majority of eligible recipients expected to receive their payment within the first two weeks.
However, some payments may take longer to process, particularly for more complex cases or where there are verification steps needed.
All payments will be made automatically directly into the same bank account where you normally receive your benefits, meaning there’s no need to apply separately or provide additional banking details.
The payment will appear in your bank statement with a specific reference code that includes ‘DWP COL’ or ‘HMRC COLS’, making it easy to identify when it arrives.
For those who receive benefits from HMRC rather than DWP (such as those on tax credits only), payments may follow a slightly different schedule, though the government aims to make all payments within the same general timeframe.
If you haven’t received your payment by the end of next month and believe you are eligible, that would be the appropriate time to contact the relevant department to query the status of your payment.
What If I Think I’m Eligible But Don’t Receive a Payment?
If you believe you meet all the eligibility criteria but don’t receive the £98 payment by the expected timeframe, there are several steps you can take.
First, double-check that you were indeed receiving one of the qualifying benefits during the specific qualifying period, as eligibility is strictly based on this timeframe rather than current benefit receipt.
Next, verify that your contact and banking details are up to date with the relevant benefit office, as outdated information could delay or prevent payments.
If you’re confident you should have received the payment, you can make a formal request for the payment to be reviewed by contacting the office that handles your benefit:
- Universal Credit recipients should message via their online journal
- Tax credit recipients should contact HMRC
- Those on other benefits should contact the DWP
When contacting these departments, be prepared to explain why you believe you’re eligible and have any relevant reference numbers or documents ready to help them investigate your case.
The government has established an appeals process for these payments, so if your initial query doesn’t resolve the issue, you have the right to pursue the matter further through official channels.
It’s worth noting that the vast majority of eligible recipients will receive their payments automatically without any issues, but systems handling millions of payments can occasionally miss individual cases.
How Can the £98 Payment Best Be Used?
While the government places no restrictions on how recipients use their £98 cost of living payment, many financial advisors suggest prioritizing essential needs.
For many households, this payment will provide welcome relief for immediate expenses such as:
- Energy bills, particularly with winter approaching
- Food costs, which continue to be higher than pre-inflation levels
- Essential medication or healthcare needs
- Urgent home repairs
- Debt repayments, particularly priority debts
If your immediate essential needs are covered, consider whether the payment might be best used to:
- Top up prepayment meters to take advantage of current rates
- Purchase essential items that might become more expensive later
- Build a small emergency fund if possible
- Invest in energy-saving measures that could reduce future bills
Financial charities recommend that recipients take a moment to plan how to use this payment most effectively rather than spending it immediately, as strategic use can help extend its benefit.
Remember that while £98 may not solve long-term financial challenges, it can provide important breathing room in tight household budgets when used thoughtfully.
Additional Support Available
The £98 cost of living support payment is just one element of the government’s wider support package, and many households may be eligible for additional help.
The Household Support Fund, administered by local councils, provides discretionary support for vulnerable households facing financial difficulties, with applications typically made directly through your local authority.
Energy bill support schemes continue to operate, with suppliers obligated to offer help to customers struggling to pay their bills, including options for payment plans or hardship funds.
Those of pension age may be eligible for additional support through Winter Fuel Payments, while people with certain disabilities might qualify for separate disability cost of living payments.
Council Tax Support schemes can reduce monthly outgoings for eligible households, with different criteria depending on your local authority.
For comprehensive advice on all available support, organizations like Citizens Advice, Turn2Us, and StepChange offer free guidance tailored to individual circumstances.
These charities can help identify which additional support measures you might be eligible for beyond the £98 payment, potentially unlocking further financial assistance.
Looking Ahead: Future Support Measures
The government has indicated that this £98 payment forms part of an ongoing commitment to supporting vulnerable households through the cost of living crisis.
While no specific announcements have been made regarding future payment amounts or dates, ministers have suggested that additional support will be forthcoming as economic conditions require.
Economic forecasters suggest that while inflation has eased from its peak, household budgets will remain under pressure for the foreseeable future, particularly regarding energy and food costs.
The government’s approach appears to be evolving toward more regular, targeted support rather than larger one-off payments, which many recipients have reported helps with budgeting.
Opposition parties have called for more comprehensive support measures, suggesting that the political consensus recognizes the ongoing challenges many households face.
Financial planning experts recommend that while these payments provide important relief, households should also explore longer-term solutions and support where possible, including benefit entitlement checks to ensure they’re receiving all eligible assistance.
The £98 cost of living support payment represents an important financial lifeline for millions of UK households continuing to weather economic challenges.
For eligible recipients, these payments will be processed automatically in the coming weeks, providing much-needed support without requiring complex application processes.
If you’re receiving qualifying benefits, keep an eye on your bank account and benefit communications for updates about your payment, and don’t hesitate to seek clarification if you believe you’re eligible but don’t receive the payment when expected.
Remember that this payment is just one component of a broader support framework, and many households may qualify for additional assistance through various government and charitable schemes.
As we navigate these challenging economic times, staying informed about available support and planning carefully for how to use these resources can help maximize their benefit for you and your household.
