The Cost of Living Payment is on its way – but what does DWP COL mean exactly? (Picture: Getty Images/iStockphoto)

More than eight million families are set to receive the first of 2023/24’s Cost of Living Payments.

As the cost of living – from eye-watering energy bills, to rising phone costs, to the uplift in food prices – continues to put pressure on households across the UK, it will surely be a welcome financial boost.

Those who are eligible will start receiving the £301 support payment from today (April 25) onwards.

So, you might notice on your bank statement or on your banking app that, along with any usual benefit payments, there’s a new reference to ‘DWP COL’ popping up.

What does that mean exactly?

What does DWP COL mean on your bank statement?

If you see ‘DWP COL’ in your bank account, it means you’ve been paid the Cost of Living Payment.

The letters are a reference, and will appear alongside your National Insurance (NI) number, accompanying a payment of £301.

‘DWP COL’ is the reference you’ll see on your bank statement for the Cost of Living Payment (Picture: Mark Kerrison/In Pictures via Getty Images)

So, DWP stands for ‘Department for Work and Pensions’ and one can presume that COL stands for ‘cost of living’.

Gov.uk states on a page about the payment: ‘The [DWP] will send payments automatically and directly to recipients’ bank accounts, with a reference of their National Insurance number followed by ‘DWP COL’.’

Keep in mind that if you’re eligible to receive the bumper payment, you don’t need to apply for it.

So, it will just automatically show up in your bank account between April 25 and May 17.

Don’t be alarmed if it doesn’t show up immediately, as payments are due to be staggered over the next few days and weeks.

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If you receive tax credits and no other benefits, however, your payment will be paid between May 2 and May 9 by HMRC – and your banking reference will be ‘HMRC COL’.

Again, this is all automatic, so if you’re eligible you won’t need to apply.

Work and Pensions Secretary Mel Stride says: ‘This latest additional payment will be welcomed by millions of families – as will further payments due over the next year.

‘We have continually supported those most vulnerable to rising costs, including through record benefits and national living wage increases as well as these exceptional Cost of Living Payments responding to the global pressures we are facing.’

MORE : I haven’t received my £301 cost of living payment – what do I do?

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Does it mean you’ve received the Cost of Living Payment?