These range from a £650 payment to millions of the UK’s most vulnerable households to a £400 universal energy grant which will arrive in the autumn. The support payments were announced in two stages earlier this year by former chancellor Rishi Sunak – here’s everything you need to know about them.
When is the second cost of living payment due?
The one-off payment of £650 towards living costs is paid in two installments to all households on criterion-referenced benefits, including those receiving the following:
Universal credit Income-based Jobseeker’s Allowance Income-related Employment and Support Allowance Income support Employment tax credit Child tax credit Pension credit
For people who qualify through means-tested benefits, the first installment of £650 started landing automatically in bank accounts from Thursday 14 July onwards, continuing until the end of the month. The government has announced that the second and final payment will be issued directly to households in the autumn, with an exact date yet to be confirmed. Those who qualify solely for Child Tax Credit and Working Tax Credit will have to wait until the autumn for the first instalment, with an exact date yet to be decided. The second payment will then arrive in the winter, with further details again to be confirmed. Many people across the UK are struggling in a worsening cost of living crisis (Picture: PA) The DWP explained: “Payments from HMRC for those in receipt of tax credits will only follow each other shortly to avoid double payments.” For all claims, the first installment is £326 and the second payment will be £324. The government said: “The payments are designed to be deliberately slightly unequal to minimize the risks of fraud by those who may seek to exploit this system.” If you qualify for the payment, you don’t need to apply – the £650 will be submitted automatically and should appear in your bank account under the code “DWP COL” or similar. The grant is tax-free for all eligible groups, will not affect the benefit ceiling and will not affect existing benefits. Payments appeared to be made relatively quickly after development began, unlike the council tax rebate, which faced delays in many areas. A week after payments began, the government said more than 7.2 million of the cost-of-living payments had been made, totaling £2.4 billion.
More on the Cost of Living Crisis
When will the £400 energy grant be paid?
The £400 energy payment is made to every household in the country, with no means tests. Initially, the plan was for households to receive a £200 discount on their energy bills in October, which would then be paid back over five years from 2023, with customers paying an extra £40 on their bills each year. However, at the end of May – and after much criticism, Mr Sunak announced that the discount would be increased to £400 and would no longer need to be paid back. The £400 rebate will start in October and will be paid to consumers in installments over six months, with grants administered through energy suppliers. The discount will be broken down in installments of £66 on people’s energy bills in October and November, rising to £67 every month from December to March 2023. It will be provided on a monthly basis, regardless of whether people pay bills monthly, quarterly or have an associated payment card. Those with a domestic electricity meter point who make payments by payment, regular credit and direct debit cards will receive an automatic discount on their bills during the six-month period. Those who use prepaid meters and top up their credit before using energy will be provided with discount vouchers in the first week of each month. These will be sent by text, email or post with the most up-to-date contact details customers have left with suppliers.
When will pensioners get £300 in living allowance?
Most pensioners will already be familiar with the Winter Fuel Payment, an annual tax-free lump sum issued by the Department for Work and Pensions. This year, the Government is adding an extra £300 to boost support for more than eight million pensioner households. It means people born on or before 25 September 1956 could be entitled to between £250 and £600 to help pay their bills. According to the government, payments are usually made in November or December and should be paid by January 13, 2023. You don’t usually need to apply for the Winter Fuel Payment and if you qualify, most people should get the money automatically. However, if you are not in receipt of the state pension or other social security benefit or live abroad, you may need to make a claim. You can do this from Monday 1 August 2022 onwards, and the government website has full details of how to claim here, as well as eligibility rules here.