New Style ESA applicants will not receive cost of living payment next month and that is why

According to the Department for Work and Pensions (DWP), people claiming New Style Employment and Support Allowance (ESA) will not be eligible for the £650 cost of living payment. The DWP confirmed last week that more than eight million low-income households across the UK will receive a cash payment of £326 from July 14 to ease rising cost of living pressures.

Following this, another payment of £324 is due to land in bank accounts in the fall, reports the daily record. However, not all benefit recipients are eligible for the additional £650 cash support.

The revelation prompted Labor MP Alex Sobel to ask the Secretary of State for Work and Pensions, Dr Therese Coffey: “On what basis did her department take the decision to exclude people from the group of support for employment allowance and New Style support of the cost of £650 living payment?

In a written response on June 17, DWP Minister David Rutley MP explained: “The [UK] The government has pledged to manage public finances responsibly by targeting £650 cost-of-living support to the eight million low-income, means-tested households where it is most needed .

He clarified: ‘Contributory Employment and Support Allowance is not a means-tested benefit.

Eligibility for the cost of living payment of £650

Disabled people also receiving any of the below means-tested benefits will also receive the £650 payment:

Universal Credit

Income-Based Jobseeker’s Allowance

Employment and Income Support Benefit

Income support

Work Tax Credit

Child tax credit

Pension credit

If you receive a DWP means-tested benefit and tax credits, DWP will pay the £650 in two parts as shown above (£326 from 14 July).

If you only receive tax credits, HM Revenue and Customs (HMRC) will pay you in two installments – one in the fall and another in the winter. No specific date has yet been released.

Full details of all cost of living payments can be found on the GOV.UK website here.

Mr Rutley pointed to a one-off £150 cost of living payment set to be paid in September to six million disabled people across the country who receive an eligible benefit without a means test.

£150 benefit eligible for cost of living payment

The ‘disability cost of living payment’ of £150 will be paid to people receiving these benefits:

  • Disability Living Allowance (DLA)
  • Personal Independence Payment (PIP)
  • Attendance allowance
  • Payment for disabled adults (Scotland only)
  • Payment for disabled child (Scotland only)
  • Armed Forces Independence Payment
  • Constant attendance allowance
  • War pension mobility supplement

You can read the full written response on GOV.UK, here.


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Elaine R. Knight