Millions of households across the United Kingdom are struggling to make their incomes stretch to cover the rising cost of living.
That is why the government is providing over £15 billion in further support, targeted particularly at those with the greatest need.
DWP Cost of Living Payments
This package is in addition to the over £22 billion announced previously, with government support for the cost of living now totaling over £37 billion this year.
This means that almost all of the eight million most vulnerable households will get £1,200 of one-off support in total this year to help with the cost of living, with all domestic electricity customers receiving at least £400.
Energy Bills Support Scheme doubled to a one-off £400:
Households will get £400 of support with their energy bills through an expansion of the Energy Bills Support Scheme.
As well as doubling the £200 of support announced earlier this year, the full £400 payment will now be made as a grant, which will not be recovered through higher bills in future years.
Energy suppliers will deliver this support to households with a domestic electricity meter over six months from October.
Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher.
This support will apply directly to households in England, Scotland, and Wales. It is GB-wide and we will deliver equivalent support to people in Northern Ireland.
This support is in addition to the £150 Council Tax rebate for households in England in Council Tax bands A-D, which was announced in February, and which millions of households have already received.
£650 one-off Cost of Living Payment for those on means-tested benefits:
More than 8 million households on means-tested benefits will receive a payment of £650 this year, made in two installments. This includes all households receiving the following benefits:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
DWP will make the payment in two lump sums – the first from July, and the second in the autumn. Payments from HMRC for those on tax credits only will follow shortly after each to avoid duplicate payments.
Claimants will need to be in receipt of one of these benefits or have begun a claim which is later successful, as of 25th May 2022 to be eligible for the first of the two installments. HMRC and DWP will provide further guidance, and the government will set out the eligibility date for the second installment, in due course.
- This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
- The government will make these payments directly to households across the UK.
- The legislation will be introduced shortly to allow payments to be made to this timetable.
One-off £300 Pensioner Cost of Living Payment
Pensioners are disproportionately impacted by higher energy costs, and many low-income pensioner households do not claim the means-tested benefits they are entitled to.
So pensioner households will receive an extra £300 this year to help them cover the rising cost of energy this winter.
This additional one-off payment will go to the over 8 million pensioner households across the UK who receive the Winter Fuel Payment and will be paid on top of any other one-off support a pensioner household is entitled to, for example where they are on pension credit or receive disability benefits. Eligible households currently receive between £200 - £300, so the payment will represent at least double the support for this winter.
The Winter Fuel Payment (including the extra Pensioner Cost of Living Payment) is not taxable and does not affect eligibility for other benefits.
All pensioner households will get the one-off Pensioner Cost of Living Payment as a top-up to their annual Winter Fuel Payment in November/December. For most pensioner households, this will be paid by direct debit.
People will be eligible for this payment if they are over the State Pension age (aged 66 or above) between 19 – 25 September 2022. There are certain circumstances where an individual above State Pension age does not qualify for the Winter Fuel Payment which can be found here on gov.UK [https://www.gov.uk/winter-fuel-payment/eligibility]
The government will make these payments directly to households across the UK.
£150 Disability Cost of Living Payment
Around six million people across the UK who receive the following disability benefits will receive a one-off payment of £150 in September:
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Scottish Disability Benefits
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement</