DWP Issues Final Decision on Future of Cost of Living Payments
The Department for Work and Pensions (DWP) has confirmed that it will not be making any further Cost of Living payments in the future. The payments, which were introduced in 2022 to help people on low-income benefits, will not be continued beyond 2024.
According to an update issued by the DWP, the Cost of Living payments were made to eligible individuals who received certain benefits or tax credits. The payments were made automatically, with no need for individuals to apply. However, the government has now confirmed that these payments will not be made in 2025.
The Cost of Living payments were a series of one-off payments made to eligible individuals, including £326, £324, £301, £300, and £299. To be eligible, individuals had to receive one of the following benefits or tax credits on certain dates: income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), Income Support, Pension Credit, Universal Credit, Child Tax Credit, or Working Tax Credit.
The DWP’s decision comes after the government cut the Winter Fuel Payment for pensioners last year, with the annual heating bill aid now only available to those claiming means-tested benefits. The move was part of a broader effort to reduce public spending and repair the country’s finances.
As reported by the Manchester Evening News, the government has warned that individuals should be cautious of scams related to the Cost of Living payments. If you have received a message asking you to apply or contact someone about the payment, it may be a scam.
The decision to end the Cost of Living payments has been met with criticism from some quarters. However, the government has defended its decision, citing the need to restore economic stability and repair public finances. According to the Prime Minister’s official spokesman, "The government set out its position on means-testing winter fuel. It was a difficult decision but one the government had to take to repair our public finances and stabilise the economy and the government’s priority is ensuring pensioners receive the financial support they deserve with millions set to see their state pension rise."
The spokesman added, "The policy is set out, there will not be a change to the government policy, which set out the difficult decision we had to take to ensure economic stability, repair the public finances following the £22 billion blackhole left by the previous government."
As reported by the Manchester Evening News, Keir Starmer has also ruled out reversing the decision to cut the winter fuel payments for millions of pensioners. The Prime Minister’s official spokesman said that there would be no change to the government’s policy, which aims to ensure that pensioners receive the financial support they need.
The DWP’s decision on the Cost of Living payments is the latest development in a series of measures aimed at reducing public spending and promoting economic stability. As the government continues to navigate the challenges of the post-pandemic economy, it is likely that further decisions on benefits and tax credits will be made.
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- DWP announces changes to benefits system
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