More than half a million Universal Credit claimants won’t receive at least half of the £650 cost of living payment.

The Department of Work and Pensions (DWP) have denied the initial £326 payment to 551,000 claimants because they earned too much from work, The Mirror reports.

The DWP said anyone who had not received the payment as a result of earning too much from work in the 30-day qualifying period could appeal.

If that appeal is successful, they will receive the payment retroactively.

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A DWP spokesman told The Mirror: “Cost of Living Payments have been designed to target support for households with low incomes, on means-tested benefits.

“But inevitably a small number will be ineligible on the qualification dates of a change of income, earnings or other circumstances.

“All claimants have the right to appeal their entitlement.”

Shadow Work and Pensions Secretary Jonathan Ashworth said: “It’s staggering that so many people struggling to cope with the pressures of rising energy bills were denied help simply because of the quirks of DWP computer system or sanctions.

“This is a crisis for thousands of households. Ministers should get this vital help to those who need it.”

When will DWP £324 payment be made?

The Government paid the first £326 payment to Universal Credit and other benefit claimants in July.

It was also paid to those on pension credit and those in receipt of legacy benefits.

More than 8 million households on low-income benefits will receive the sum starting on November 8.

The DWP says households receiving DWP benefits will receive the second part of the £650 cost of living payment from November 8 to 23.

Those eligible for the payment will see the money paid into their bank accounts automatically. In a small minority of cases claimants may receive payments later than November 23.

Who will receive DWP £324 cost of living payment?

People in receipt of the following benefits will receive the second half the £650 cost of living payment next month:

  • Universal Credit
  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Working Tax Credit
  • Child Tax Credit
  • Pension Credit