More than eight million households will get a £900 Cost of Living Payment boost in the next financial year.
The payments are similar to the £650 Cost of Living payments made in 2022 and will go to households claiming low-income benefits.
It is not known yet exactly how the 2023 Cost of Living Payments will be divided, but they will definitely be paid in instalments in the 2023/2024 financial year. The Treasury Committee has recommended the Government spreads them over six months in the late autumn, winter and early spring period.
Read more: North East postcodes now due two Cold Weather Payments
This is what we know so far about the £900 Cost of Living payments.
What is the Cost of Living Payment for 2023-2024?
The Government has confirmed eight million households on low-income benefits will get £900 of Cost of Living Payments in the 2023-2024 financial year (that's between April 2023 and March 2024).
As with 2022's £650 Cost of Living Payment, the sum will be split into instalments. But this time it may be more than two payments and is recommended to be spread throughout the colder months.
Who will get £900 Cost of Living Payment?
As with 2022's payments, eligible households on means-tested benefits will get the money from either the DWP or HMRC.
They include those receiving: Universal Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Pension Credit, Working Tax Credit and Child Tax Credit
How will the £900 Cost of Living Payment be split?
The £900 definitely won't be paid at once.
The Government says: "These will be made in more than one payment. DWP and HMRC will provide further detail on timing of these payments and eligibility dates in due course."
The Treasury Committee has recommended to the Government that the £900 be split into six payments made over the colder months (for example, one payment in each of October, November, and December in 2023 and January, February and March in 2024.
Six equal payments would work out as £150 a month - although the Government may decide to give higher payments in the coldest months.
The Government has said there will be more than one payment and further details will be given in due course.
Harriett Baldwin, chair of the Treasury Committee, said: “As winter draws in and temperatures drop, many will be worrying about the cost of their energy and heating bills.
“Alongside the support already provided this year, the Chancellor has told us that further cost-of-living assistance will be available next winter to recipients of means-tested benefits.
“This runs the risk of creating perverse cliff-edges and eroding work incentives, and our cross-party committee is proposing a way of mitigating these risks.”
A Government spokesperson said: “We are protecting the most vulnerable households this winter with cost of living support worth at least £1,200 going to millions. Many payments including Cost of Living Payments, Energy Bills Support Scheme and Winter Fuel Payments have been staggered throughout the year and the Household Support Fund is available all year round.”
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