Universal credit- cost of living query

Janes888

Hi, asking for my neighbour.  They have recently claimed universal credit but are getting £0 as paying of debt related to old UC claim.  They are asking if they would receive the 2 remaining COL payments or miss out 

poppy12345

The criteria for the next 2 payments haven't been announced yet. The next one isn't due until the Autumn so quite a while to go yet because the criteria is announced.

Spoonie_Turtle

In theory they should qualify as it's £0 due to debt repayment rather than due to other income.  Whether that actually happens in reality, I don't know.

HillStreetBlues

poppy12345 said:

The criteria for the next 2 payments haven't been announced yet. The next one isn't due until the Autumn so quite a while to go yet because the criteria is announced.

The criteria is contained in the Social Security (Additional Payments) Act 2023,  so that is known.

The unknown is what will be the qualifying & payments dates.
Qualifying days for second one  no later than 31st Oct 23  for third one no later than 29th Feb 2024.

HillStreetBlues

Spoonie_Turtle said:

In theory they should qualify as it's £0 due to debt repayment rather than due to other income.  Whether that actually happens in reality, I don't know.

I believe the OP will be entitled to it

An example would be on UC statement

Total entitlement before deductions  £100
Debt recovery                                  -£100
Total payment this month                  0

So although payment is zero the entitlement is £100

EDIT
just checked the Act, it does state "payments"  so now not so sure.
Hopefully someone can check.

Spoonie_Turtle

Prompted me to check.  So:

When you will not be eligible: ‘Nil awards’

You will not be eligible for the Cost of Living Payment if your benefit is reduced to £0 for the qualifying period. This is sometimes called a ‘nil award’.

Reasons your benefit may be reduced to £0 include:

• you got more than one payment of earnings in your Universal Credit assessment period
• your or your partner’s earnings went up
• your or your partner’s savings went up
• you started getting another benefit
• you got a ‘sanction’ because you did not do something you agreed in your claimant commitment

You may still be eligible for a Cost of Living Payment if your benefit is reduced to £0 and one of the following applies:

• money was taken off your benefit for other reasons, such as payments of rent to your landlord or for money that you owe
• you had a hardship payment because you could not pay for rent, heating, food or hygiene needs

https://www.gov.uk/guidance/cost-of-living-payment

HillStreetBlues

Thanks
I thought it was like that, but seeing "payment"  rather the "entitlement" in the statute made me wonder.