An estimated eight million cost of living payments for £326 landed in bank accounts across the country between July 14 and 31 providing a much-needed financial boost to households battling to keep on top of soaring energy bills and rising inflation.
However, the Department for Work and Pensions (DWP) has now announced that some people may have to pay the money back. The cash is part of the £650 means-tested cost of living payment which is being given to those on Universal Credit, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Income Support and Pension Credit.
Tax Credits claimants will also receive the support from HM Revenue and Customs (HMRC), with the first payments for £326 due to be made in September.
But in a new update on the official Cost of Living Payment guidance page, DWP warned: “If you have received a Cost of Living Payment, but we later find that you were not eligible for it, you may have to pay it back.” DWP and HMRC are using a computer program to identify those eligible to receive a cost of living payment and advise: “If you are not content with this you can contact the office that pays your benefit or tax credits to discuss it.”Eligibility guidelines for all three cost of living payments were set out in May.
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