Thousands to Receive Unexpected Support Payments
Some Universal Credit claimants across the UK are set to receive surprise payments from the Department for Work and Pensions (DWP). These unannounced payments come as part of the government’s ongoing efforts to support low-income households during a period of high inflation and rising living costs.
The unexpected payments may arrive due to various factors, including backdated cost of living support, corrections to past underpayments, or local authority grants through hardship funds.
Why Are These Surprise Payments Being Issued?
Cost of Living Delays and Corrections
Over the past two years, the government has issued multiple cost of living payments to those on means-tested benefits, including Universal Credit, Pension Credit, and legacy benefits. While most payments were made on schedule, some individuals were missed due to delays in claim processing or eligibility issues that have since been resolved.
The DWP is now issuing backdated payments to claimants who were previously overlooked or whose eligibility was confirmed after the original deadlines. These payments are arriving without prior notice, hence being described as “surprise” deposits.
Reviews of Benefit Underpayments
In addition to cost of living support, the DWP has been reviewing past cases where claimants may have been underpaid during transitions from older benefits like Employment and Support Allowance (ESA) to Universal Credit. Errors identified in these reviews are being corrected, and eligible claimants are receiving one-off payments as compensation.
These back payments can cover several months or even years of missed entitlements, depending on when the error occurred.
Local Authority Grants
Another source of surprise payments comes from the Household Support Fund, which is managed by local councils. These discretionary payments are issued to individuals or families facing financial hardship, often without the need for an application. Councils assess need using data from housing benefits, council tax reductions, or local outreach programmes.
Claimants may therefore receive a one-off payment from their local council, even if they were unaware they had been selected for support.
Who Might Be Eligible?
Not every Universal Credit claimant will receive a surprise payment. However, you may be eligible if:
- You were entitled to a cost of living payment in the past year but did not receive it.
- You previously claimed a legacy benefit and moved to Universal Credit, and a review found that your payments were incorrect.
- Your local council has provided a discretionary payment based on hardship, without requiring an application.
These payments are generally issued automatically and do not require any action from the claimant.
How Much Could Be Paid?
The amount received depends on the reason for the payment:
Cost of Living Payments
Backdated cost of living payments range from £150 to £900. These are part of the government’s wider support for people on means-tested benefits and vary based on the claimant’s situation and eligibility during key assessment periods.
Underpayment Corrections
Lump-sum payments for underpaid benefits can be substantial, depending on the duration of the underpayment. In some cases, claimants have received payments of several hundred or even thousands of pounds.
Council Grants
Payments from local councils under the Household Support Fund typically range from £50 to £300, depending on the local authority and the urgency of need.
How Will Claimants Be Notified?
Most claimants won’t receive a letter or prior notification. The payments usually appear in bank accounts with a reference like “DWP COL” (Cost of Living), “DWP UC” (Universal Credit), or the name of the local authority.
Claimants are advised to regularly check their Universal Credit online account for any messages or updates, and to be cautious of scams. The DWP will never ask for personal bank details via phone, text, or email.
What to Do If You Think You’ve Missed a Payment
If you believe you were eligible for a payment but haven’t received one:
- Log into your Universal Credit account and check your payment history and messages.
- Contact the DWP by phone to inquire about missed cost of living payments or underpayment reviews.
- Contact your local council for information about discretionary payments or emergency hardship funds.
Importance of Staying Informed
Keeping your details up to date in your Universal Credit account is essential. Any change in income, housing, or family situation can affect your benefit entitlement. Regularly reviewing official communications can also help ensure you don’t miss support opportunities.
Final Note
These surprise payments come at a vital time for many struggling households. While not everyone on Universal Credit will receive them, thousands are now seeing extra support arrive in their accounts without warning.
This ongoing assistance reflects the government’s continued response to the cost of living crisis and its commitment to correcting past administrative issues. Claimants are encouraged to stay vigilant, check their accounts regularly, and contact authorities if they believe they may be entitled to further support.