The Government has announced a series of measures to support people with the cost of living crisis in 2023. It follows on from a number of payments and discounts offered in 2022, such as the £650 cost of living payment and the £400 energy support scheme.
Many of next year's plans were set out in the Chancellor's Autumn Statement last month. In the same address, he also pledged to increase benefits and the State Pension in line with inflation - a huge relief to many struggling with soaring prices.
Support measures planned include payments targeted at supporting groups such as those on low incomes, pensioners, and people with disabilities. There are also some ongoing policies designed at helping people with energy bills throughout the winter and these will continue into 2023.
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Here's what we know so far about next year's support:
The most significant measure for many people will be the £900 cost of living payment for people on means-tested benefits. Eight million households will qualify for the support, the Government says, with people eligible if they receive benefits including:
- Universal credit
- Income-based jobseeker’s allowance
- Income-related employment and support allowance
- Income support
- Pension credit
- Working tax credit
- Child tax credit
Like the £650 grant in 2022, the £900 payment will be made in more than one instalment, The i reports. It will also be tax-free, will not count towards the benefit cap, and will not affect any other benefits a person receives.
The Department for Work and Pensions (DWP) has not specified precise information about when the £900 will be paid, but it has said it will go out in the 2023-24 financial year - so from April onwards.
There will also be another £150 disability cost of living payment, to help those with disabilities with the extra costs they face. It will be available to anyone eligible for:
- Disability living allowance
- Personal independence payment
- Attendance allowance
- Scottish disability benefits
- Armed forces independence payment
- Constant attendance allowance
- War pension mobility supplement
Again, the DWP has said more information on eligibility and payment dates will be available "in due course". It follows on from a payment of the same amount paid to people on disability benefits in 2022.
There will be an additional £300 cost of living payment for vulnerable pensioner households next year. Precise eligibility rules and payments dates are yet to be announced, but it is likely to work in the same way as this year's pensioner cost of living payment.
Like with the £900 payment, the money will be tax-free and will not have any impact on existing benefit awards. The payments will be made across the UK.
Throughout the rest of the winter, people will continue to be helped with their energy bills by the Government's energy price guarantee, which caps the energy bill for a typical household at £2,500.
Every UK household has also been given a £400 discount on their energy bills, paid in instalments of £66 or £67 across six months. For most people the discount is applied automatically, but some people who use traditional pre-payment meters (i.e. without a smart meter) have been sent vouchers.
Pensioners are also being supported with their bills by the winter fuel payment which this year has been boosted by the pensioner cost of living payment to make it worth up to £600, depending on a person's circumstances. The winter fuel payment is paid every year.
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