The Department for Work and Pensions (DWP) has today
announced more detail on the payment schedule for the next round
of cost of living support unveiled in the Chancellor’s Autumn
Statement, building on payments made to over eight million people
in 2022.
The new £900 cash boost for over eight million eligible
means-tested benefits claimants, including those on Universal
Credit, Pension Credit and tax credits, starts in Spring and will
go direct to bank accounts in three payments over the course of
the financial year. There will also be a separate £150 for over
six million disabled people and £300 for over eight million
pensioners on top of their Winter Fuel Payments.
Exact payment windows will be announced closer to the time, but
are spread across a longer period to ensure a consistent support
offering throughout the year. They will be broadly as follows:
- £301 – First Cost of Living Payment – during Spring 2023
- £150 – Disability Payment – during Summer 2023
- £300 – Second Cost of Living Payment – during Autumn 2023
- £300 – Pensioner Payment – during Winter 2023/4
- £299 – Third Cost of Living Payment – during Spring 2024
Work and Pensions Secretary, said:
We are sticking by our promise to protect the most vulnerable and
these payments, worth hundreds of pounds, will provide vital
support next year for those on the lowest incomes.
The government’s wider support package has already helped more
than eight million families as we continue to deal with the
global consequences of Putin’s illegal war and the aftershocks of
the pandemic.
Chancellor of the Exchequer, added:
I know these are tough times for families across the UK who are
struggling to meet rising food and energy costs, driven by the
aftershocks of Covid and Putin’s war in Ukraine.
That’s why we’re putting a further £900 into the pockets of over
8 million low income households next year. These payments are on
top of above inflation increases to working-age benefits and the
Energy Price Guarantee, which is insulating millions from even
higher global gas prices.
Tackling inflation is this government’s number one priority and
is the only way to ease the strain of high prices, drive long
term economic growth and improve living standards for everyone.
If individuals are eligible they will be paid automatically, and
there will be no need to apply. Claimants who are eligible for
any of the Cost of Living Payments and receive tax credits, and
no other means-tested benefits, will receive payment
from HMRC shortly
after DWP payments are
issued.
These payments build on the Government’s extensive support
package to help households tackle the globally rising cost of
living stemming from the pandemic and the war in Ukraine.
The Government’s Energy Price Guarantee continues to cap energy
costs, saving the average household around £900 this winter and a
further £500 in 2023/24. Benefits, including working age benefits
and the State Pension, will also rise in line with inflation from
April 2023, ensuring they increase by over 10%. April will also
see the biggest ever cash rise to the National Living Wage,
bringing it to £10.42 an hour, and a further year-long extension
of the Household Support Fund in England and associated devolved
nation funding worth £1 billion in total.
This comes on top of the 2022 support package, which included:
- A £650 Cost of Living payment for means-tested benefit
claimants, split into two payments, each of which supported over
eight million households
- Further £300 and £150 payments, which reached over eight
million pensioners and over six million disabled people
respectively
- A £150 Council Tax rebate for all households in Council Tax
bands A-D
- A £400 energy bill discount for all households, which will
continue to run through March
Further Information
- For each payment, exact payment start dates and eligibility
criteria will be communicated by the Department before payments
begin. HMRC will
communicate details for tax credit-only customers.
- These payments will all be tax-free, will not count towards
the benefit cap, and will not have any impact on existing benefit
awards.
- More than 8 million households on benefits will receive
payments of up to £900, made in three lump sums. Eligible
households will be on one of the following benefits: Universal
Credit, Income-based Jobseekers Allowance, Income-related
Employment and Support Allowance, Income Support, Working Tax
Credit, Child Tax Credit and Pension Credit.
- The £900 Cost of Living Payment will be delivered in three
slightly different amounts. The distinct value relates to a
specific qualifying period, so it is simpler to determine if a
payee received the correct payments, reducing the fraud risk
of people who claim not to have had one of the specific three
payments, as DWP and HMRC will
be able to clearly track those who have.
- Low-income households are benefiting from Government support
in a variety of different ways. You can read more about the
Government’s cost of living support and what is
available here.
