The government announced this week that it will introduce a new wave of cost of living payments next year to help struggling households.
On Thursday (November 17), Chancellor Jeremy Hunt confirmed that the government's cost of living support package for 2023/24 will be worth £26 billion in addition to increased benefits worth £11 billion. It means that more than eight million households across the UK will receive additional support in the face of the cost of living crisis, according to the Department for Work and Pensions (DWP).
Those households eligible for the cost of living payments who are also receiving means-tested benefits could get an additional £900 next year. It is understood that the £900 will be paid in instalment, similar to the previous cost of living payments, however, more details are yet to be released.
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The Chancellor told MPs: "For the most vulnerable we will introduce additional cost-of-living payments next year, of £900 to households on means-tested benefits; £300 to pensioner households; and £150 for individuals on disability benefit.
The DWP also confirmed to the Manchester Evening News that some people may be eligible to get the cost of living payment on means-tested benefits, the pensioner household payments, and the disability payment at the same time, totalling to an extra £1,350 in one year.
In order to e eligible for the new cost of living payments, households must receive one of the following benefits:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
According to the DWP, the payments will be tax-free and not count towards the benefit cap or affect any existing benefit awards.
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