The UK government has confirmed a new £98 cost of living support payment to help vulnerable households cope with rising everyday expenses. As inflation continues to strain household budgets, this payment is part of a broader strategy to provide targeted, timely relief to those most in need. Here’s what you need to know about eligibility, how it works, and what to do if you think you qualify.
What Is the £98 Cost of Living Support Payment?
This one-off £98 payment is a non-repayable grant aimed at low-income households receiving specific benefits. Unlike previous lump sum payments, this is part of a more frequent support model to help households manage ongoing expenses, including energy bills, food, and rent.
It is part of the government’s continued response to the cost of living crisis, especially during periods of high energy costs and essential goods inflation.
Who Is Eligible for the £98 Payment?
Eligibility is primarily based on the receipt of certain benefits during a specific qualifying period. You may be eligible if you received at least one of the following:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
However, eligibility is not automatic just because you’re receiving one of these benefits.
Additional Criteria:
- You must have received a payment during the qualifying period (usually the previous month).
- Universal Credit claimants must have received a payment for an assessment period that ended within the qualifying window.
- Tax Credit recipients must have received a payment or an annual award of at least £26.
- Pension Credit recipients must have been entitled during the window—even if their actual payment was £0 due to income limits.
Who Is Not Eligible:
- Individuals receiving only New Style ESA, New Style JSA, or contributory ESA (unless they also receive a qualifying benefit).
- Households receiving Housing Benefit only without a qualifying benefit.
How Will Payments Be Made?
- Automatic deposits into your existing benefit bank account.
- You don’t need to apply—no forms or extra steps are required.
- Payments will be listed with references like “DWP COL” or “HMRC COLS” in your statement.
- Rollout begins at the start of the next month, with most recipients receiving payment within two weeks.
Joint Claimants:
- Couples with joint benefit claims will receive one payment per household, not per person.
Lump-Sum Payout:
- In some special cases, such as death after the qualifying period or underpayment errors, the payment may be issued to an estate or as a backdated lump sum.
What If You Don’t Receive the Payment?
If you haven’t received your payment by the end of the month following the rollout, and believe you are eligible:
- Double-check your eligibility:
- Confirm your benefit type.
- Check if the qualifying period aligns with your payment dates.
- Review your benefit portal (Universal Credit or HMRC).
- Contact your benefits office:
- DWP for Universal Credit, Pension Credit, and income-based benefits.
- HMRC for tax credit-related queries.
- Update your bank details if needed.
- If unresolved, request a review or appeal—you are entitled to a formal response.
Smart Ways to Use the £98 Payment
While there are no restrictions on how the payment can be spent, financial experts recommend using it to cover critical needs:
- Utility bills (energy, gas, water)
- Groceries and essentials
- Rent shortfalls
- Emergency savings
If immediate needs are covered, consider using it to:
- Reduce high-interest debts
- Top up a prepayment energy meter
- Create a small emergency fund
Other Available Support
This £98 payment is just one part of a larger support network. You may also qualify for:
| Support Type | Description | How to Access |
|---|---|---|
| Household Support Fund | Discretionary help from local councils | Apply via local authority website |
| Winter Fuel Payment | Extra winter help for pensioners | Paid automatically if eligible |
| Disability Cost of Living | Additional payments for those with qualifying conditions | Through existing disability benefits |
| Energy Support Schemes | Supplier assistance, payment plans, hardship funds | Contact your energy provider |
| Council Tax Support | Reduced council tax bills for low-income households | Apply through your local council |
Final Thoughts
The £98 cost of living support payment provides immediate financial relief to millions of eligible UK households. It’s part of a larger strategy to offer regular, targeted support that’s easier to access and better aligned with household budgeting needs.
If you’re receiving benefits, check your eligibility now and monitor your bank account over the coming weeks. For those who miss the payment or have concerns, be proactive—contact your benefit office and request a review if necessary.
Remember, additional help is available, and charities like Citizens Advice, Turn2Us, and StepChange can help you unlock further support if you’re struggling.
FAQs
1. Do I need to apply for the £98 payment?
No. Payments are automatic if you meet the eligibility criteria.
What’s the qualifying period?
Typically the month before the payment date, but exact windows are published on GOV.UK.
3. Can I receive more than one payment if I get multiple benefits?
No. You’ll receive only one payment per household, even if you get multiple qualifying benefits.
4. What should I do if I didn’t receive it but think I’m eligible?
Check your benefit portal, then contact DWP or HMRC with your case details.
