More than eight million households across the UK will be eligible for next year's Cost of Living Payment worth £900.
Similar to the previous £650 handed out throughout 2022, the payment will provide a cash boost to households claiming low-income benefits. Such households are considered the most vulnerable to the cost of living crisis sweeping across the UK which has been uplifted by rising energy prices and soaring inflation.
However, many details surrounding the payment are yet to be issued, including how it will be divided throughout the 2023/2024 financial year. However, as per the Treasury Committee's advice, it is likely that it will be spread across a six-month period.
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Here is everything we know about the £900 Cost of Living payment so far...
What is the new Cost of Living Payment
According to the government, more than eight million households who claim low-income benefits will receive up to £900 in cost of living support in the 2023/2024 financial years (April 2023 to March 2024). However, the payment won't be made in one lump sum and will instead be split into varied instalments.
Who will be eligible?
Only certain groups will be eligible for the £900 Cost of Living Payment. Similar to the 2022 payments, you must first receive a means-tested benefit from either the DWP or HMRC. Such benefits include 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 payment be split?
According to the government, the payments will be made in yet undetermined instalments. It adds: "DWP and HMRC will provide further detail on timing of these payments and eligibility dates in due course."
However, the Treasury Committee has advised that it be split into six instalments throughout the colder months. Throughout six months, this would equate to £150 a month, although this may vary depending on the government's decision.
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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