Five reasons why your £650 cost of living payment could be delayed
MILLIONS of head-up households will see the first £650 cost of living payment instalment hit their accounts this week. The first half of the help, worth £326, will hit bank accounts from July 14 – but some who are eligible may find their cash is delayed. The help was first announced in May by former Chancellor and wannabe PM […]
MILLIONS of head-up households will see the first £650 cost of living payment instalment hit their accounts this week.
The first half of the help, worth £326, will hit bank accounts from July 14 – but some who are eligible may find their cash is delayed.
The help was first announced in May by former Chancellor and wannabe PM Rishi Sunak in a bid to help Brits struggling with rising bills.
The payments will automatically be made to those receiving benfits including Universal Credit, income-based Jobseeker’s Allowance (JSA), Pension Credit, and working tax credit and child tax credit.
More than eight million people will benefit from the much-needed cash – but the money might not land in your account this week.
We explain five reasons why you may have to wait longer for your cash.
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Staggered payments
As there are millions of payments the government needs to dish out this week, the DWP recently warned of delays issuing cash.
DWP minister David Rutley MP wrote in a previous statement that it is “not possible” to issue the payments all at the same time due to the sheer volume of people entitled to it.
He said that payments will be “staggered, but not by benefit type”.
It means that you might not see the help land in your account exactly on July 14 and may have to wait longer.
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What to do
If your payment hasn’t landed in your account on July 14, then don’t panic.
You should wait to see if it lands in your account by the end of July – which is when the majority of claimants will be paid.
Make sure you keep an eye out for DWP XB – which is the code that the payment will be recorded on on your bank statement.
If you still haven’t got your payment by then, it’s worth contacting the DWP
“Complex” claims
Those with “complex” circumstances can expect a slight delay to their first cost of living payment instalment.
The DWP confirmed that this would affect a “small number of unique cases”.
We’ve asked the DWP how a “complex” circumstance is defined and we will update this story when we know more.
It means that while most payments will be issued by the end of July, yours might land even later than this in your account.
What to do
You might want to check in with the DWP about whether or not your claim falls under the “complex circumstances” category.
If it does, then don’t be alarmed if your cash doesn’t land in your account by the end of July.
Tax credit claimants
Those claiming tax credits will see a delay to their first £650 cost of living payment instalment.
As many as 1.5million people claim tax credits and no exact date has been set for when claimants should expect to see the help paid out.
Households claiming tax credits have been told that they should expect to get the first wad of money in the autumn, with the second payment landing in winter.
People may be receiving tax credits alongside other benefits that qualify for the cost of living payment.
So payments are being dished out at a later date to avoid any double payments being made.
What to do
The DWP has not yet released specific dates for when tax credit claimants can expect to receive the help – but we’ve asked for more information.
You don’t have to do anything in the meantime – payments will be issued automatically.
You’ve changed bank accounts
You might find that your payment is delayed if you have recently closed the bank account your benefits are usually paid into.
The DWP has confirmed to The Sun that it is using the bank account details it holds in its systems.
If you haven’t let the DWP know your bank account has changed, it will pay the money into your old one.
That means the payment will be rejected and the DWP will follow up with you – which could cause delays.
What to do
Whenever your personal circumstances change, it’s important to let the DWP know immediately.
If you don’t, your benefit payments could be affected or delayed.
You’re waiting for your benefit claim to be approved
To be eligible for the £650 cost of living payment, you must be in receipt of one of the following on the qualifying date:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
Those receiving one of these on May 25 (or who had put in a claim that goes on to be successful by then) will get the first instalment.
But if you made a claim in time for the qualifying date but it hasn’t yet been approved by the DWP, you might find your payment is delayed.
What to do
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You’ll need to sign into your account to keep an eye on the progress of your benefit claim.
Once it has been approved, it might be worth checking in with the DWP on when you can expect to receive the help.