The Department for Work and Pensions (DWP) has confirmed a £562 one-off payment for eligible pensioners as part of targeted cost-of-living support.
The payment is not a permanent State Pension increase and will not raise weekly pension rates. Instead, it is structured as a single instalment paid directly into bank accounts of qualifying recipients.
While reports reference pensioners born before 1961, eligibility is based primarily on benefit status during a defined qualifying period, not birth year alone.
Here is what has been confirmed.
What Is the £562 Payment?
The £562 payment is a one-off support measure designed to assist pension-age households facing ongoing cost pressures.
It differs from:
- Annual State Pension uprating
- Triple Lock increases
- Regular weekly pension payments
It will be paid separately from normal pension instalments.
Why “Born Before 1961” Is Mentioned
Individuals born before 1961 are generally aged 65 or over in 2026 and likely to be:
- Receiving the State Pension
- Eligible for Pension Credit
However, age alone does not qualify someone for the £562 payment. The key factor is entitlement to certain qualifying benefits during the assessment window set by DWP.
Who Is Likely to Qualify?
Eligibility is expected to include pensioners receiving one or more of the following:
- Pension Credit
- Universal Credit (mixed-age households)
- Income Support
- Employment and Support Allowance (income-related)
The qualifying benefit must be in payment during the official assessment period.
State Pension on its own does not usually trigger eligibility.
Is This a State Pension Bonus?
No.
The £562 payment:
- Does not permanently increase your pension
- Is not divided across weekly payments
- Will not alter your annual pension uprating
It is a temporary support measure.
Is the Payment Automatic?
Based on previous DWP cost-of-living schemes, payments are typically:
- Made automatically
- Sent to the same bank account as your regular benefit
- Issued without requiring a separate application
If you qualify, you should not need to fill out new forms.
When Will the £562 Be Paid?
Payments are expected to be issued during a defined payment window.
Typically, one-off DWP payments:
- Begin on a published start date
- Are paid in stages
- Appear in accounts over several weeks
If eligible, you should receive the payment within the official timeframe.
If it does not arrive immediately, wait until the full window has closed before contacting DWP.
How the Payment Will Appear
The £562 will:
- Appear separately from your regular pension
- Show a DWP reference in your bank statement
- Be deposited directly (no cheque required)
Is the £562 Taxable?
One-off cost-of-living style payments are typically:
- Non-taxable
- Disregarded for means-tested benefit calculations
- Excluded from savings limits
Official guidance confirms tax treatment in final payment documentation.
Will It Affect Other Benefits?
The payment is generally disregarded for:
- Pension Credit calculations
- Housing Benefit
- Council Tax Reduction
It should not reduce existing entitlements.
Why This Support Is Being Offered
Pensioners are often more exposed to:
- Rising energy costs
- Fixed retirement incomes
- Higher winter expenditure
- Limited earning capacity
One-off payments provide targeted relief without permanently increasing public spending commitments.
What Pensioners Should Do Now
If you believe you may qualify:
- Confirm you are receiving a qualifying benefit
- Ensure your bank details are up to date
- Monitor official DWP announcements
- Check your account during the payment window
If you are not claiming Pension Credit but think you may qualify, it is worth checking eligibility. Many pensioners miss out on entitlement.
Scam Warning
When support payments are announced, scams increase.
Remember:
- DWP will not ask for bank details via text
- You do not need to “apply” through links in emails
- Payments are automatic for eligible recipients
Only use official GOV.UK sources for confirmation.
The Bigger Financial Context
The £562 payment forms part of broader support for pension-age households.
It does not replace:
- Annual Triple Lock increases
- Structural pension reforms
But it may help cover:
- Energy bills
- Essential repairs
- Food costs
- Winter expenses
FAQs
Is everyone born before 1961 eligible?
No. Eligibility depends on qualifying benefits, not age alone.
Do I need to apply?
No. Payments are expected to be automatic.
Will this increase my weekly pension?
No. It is a one-off payment.
When will I receive it?
During the official DWP payment window.
Does State Pension alone qualify?
Usually no, unless combined with Pension Credit.
Is the £562 taxable?
Typically no, but check official confirmation.
Will it reduce other benefits?
It is generally disregarded for means-tested calculations.