DWP warns that £324 cost of living payments may fail for some

Second instalment of support to be paid by 23 November

The government has warned that a “small proportion” of automated cost of living payments could fail as millions of Britons entitled to a £650 grant start to receive their second tranche of support.

The Department for Work and Pensions (DWP) said this could be due to the wrong bank or building society account details being held on file by the department or by HM Revenue and Customs (HMRC). It could also affect those who provide details of an account that has been closed.

The two government departments have tempered concern, however, reassuring beneficiaries they have “robust processes in place to ensure that all eligible claimants will receive their payments, with manual workarounds in place if necessary”.

If you are entitled to the payment from the DWP and it has not yet arrived in your bank account, it is important to remember that recipients due to receive the money will be paid by 23 November. There is no need to contact the DWP or HMRC.

The money is being made available to those already receiving means-tested state benefits, such as Child Tax Credit, Income-Based Jobseeker’s Allowance, Income-Related Employment and Support Allowance, Income Support, Pension Credit and Universal Credit.

The first instalment of £326 was scheduled to hit bank balances from 14-31 July, while the remaining £324 started to land in people’s accounts from 8 November.

Every home across England, Scotland and Wales will receive a £400 discount that will be automatically applied to their energy bills, beginning in October and spread out over six months, while pensioners relying on the Winter Fuel Payment will be given an extra £300 to ensure they do not have to choose between heating and eating.

The household support fund, originally only intended to run from October 2021 to March 2022, has also been extended until March 2023, with the government granting local authorities an extra £1.5bn to hand out over 18 months to residents they deem to be most in need of financial help.