Millions of people around the UK are eligible to receive Government payments this year as the country battles a cost of living crisis.The support measures are largely a continuation of last year’s payments, which ranged from a one-off council tax rebate to a £650 cost of living payment and the £400 monthly energy support scheme.Perhaps the most significant grant is the new £900 cost of living payment for people on means-tested benefits – here’s what we know so far about when it’s being paid out.When is the next cost of living payment?Just like the £650 payment last year, the £900 cost of living grant will be divided into instalments.However, this time the money will be paid in three separate payments – rather than two – over the course of the financial year, starting in spring 2023.Each instalment will be a slightly different amount, which makes it easier for DWP and HMRC to track which grants people have received, in order to minimise fraud risk.Exact payment windows will be announced closer to the time, but they are being spread across a longer period to ensure a consistent support offering throughout the year, the DWP said. Its initial guideline timeframe is as follows:
£301 – first payment during spring 2023
£300 – second payment during autumn 2023
£299 – third payment during spring 2024
Claimants who are eligible for any of the payments and receive tax credits, and no other means-tested benefits, will receive payment from HMRC shortly after DWP payments are issued, as was the case with the previous £650 grant.The Government states: “For each payment, exact payment start dates and eligibility dates will be communicated by the Department before payments begin.“HMRC will communicate payment dates and eligibility dates for each Cost of Living Payment for tax credit-only customers.”Families in the UK continue to battle a serious cost of living crisis (Photo: PA)Who gets the £900 cost of living payment?According to the Government, over 8 million families in the UK on means-tested benefits will receive the cost of living payment.The £900 will be paid to people who receive any of the following benefits (you can see the full criteria here):
Universal credit
Income-based jobseeker’s allowance
Income-related employment and support allowance
Income support
Pension credit
Working tax credit
Child tax credit
Just like the previous £650 support from last year payments will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.Mel Stride, the Work and Pensions Secretary, said: “These direct payments will help people right across the UK over this year and the start of the next, as we continue to provide consistent, targeted and substantial support for the most vulnerable.“Our wider support package, including the Energy Price Guarantee, will ensure every household is being helped through this challenging period of high inflation, caused by Putin’s illegal war and the aftershocks of the pandemic.”More on Cost of livingMims Davies MP, the Minister for Social Mobility, Youth and Progression, clarified the Government’s reasoning for not expanding the payment to all benefits claimants in response to a written question from Labour MP Dame Angela Eagle.She said: “The Cost of Living payment is being targeted at low income households who are in receipt of a means-tested income replacement benefit.“Contribution-based Employment and Support Allowance (the benefit referred to by Dame Angela) is a non-means-tested benefit.“Non-means-tested benefits are not qualifying benefits for the Cost of Living payment in their own right because people receiving these benefits may have other financial resources available to them.”What other cost of living payments are there?Just like last year, there will be a separate disability cost of living payment of £150, which will be made in summer 2023.This will be paid to people who receive any of the following benefits:
Disability living allowance
Personal independence payment
Attendance allowance
Scottish disability benefits
Armed Forces independence payment
Constant attendance allowance
War pension mobility supplement
The DWP will also be extending the £300 boost to the winter fuel payment – a bonus known as the the pensioner’s cost of living payment – for winter 2023-24.Also referred to as a “heating allowance”, the winter fuel payment is an annual tax-free payment from the DWP for older people, and anybody eligible usually receives £100-£300 a year.The amount you get depends on when you were born, your living situation and the type of benefits you receive.You don’t typically have to apply for the winter fuel payment if you are eligible, and should receive the money automatically – more information about the winter fuel payment can be found here.
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