A cost-of-living package being delivered in the coming months will offer support to many households - though critics say it is not nearly enough to meet the challenges families will face.
The package includes a £400 discount on energy bills which will start from October, with £66 being applied to bills in October and November, rising to £67 each month from December through to March 2023.
The discount will be administered by energy suppliers - and it's also important to bear in mind that the UK Government says no household should be asked for bank details at any point as the discount is applied.
READ MORE: Universal Credit, ESA and JSA cost of living warning over payment gap
Other support measures include a £650 one-off cost-of-living payment for households on certain means-tested benefits; a £300 one-off pensioner cost-of-living payment for pensioner households to be paid alongside the winter fuel payment; and a £150 one-off disability cost-of-living payment for people who receive certain disability benefits.
Full list of cost of living payments due to be issued between September and Christmas
Check if you or someone in your household are eligible for a cost of living support payment
According to the Daily Record, you could get up to three different types of payment depending on your circumstances on a certain date or during a particular period.
£650 Cost of Living Payment
- If you get a qualifying low income/means-tested benefit or Tax Credits - paid in two instalments of £326 and £324
- This is paid per claim, so a couple claiming would qualify for one payment
£150 Disability Cost of Living Payment
- If you get a qualifying disability benefit
- This is paid per individual claim
£300 Pensioner Cost of Living Payment
- If you’re entitled to a Winter Fuel Payment for winter 2022 to 2023 this will be added to your entitlement
- This is paid per claim, so a couple claiming would qualify for one payment
Examples of stacked support payments
- If you are claiming Universal Credit and Personal Independence Payment, you will be eligible for £800 in support - £650 means-tested payment and the £150 disability payment.
- A person of State Pension age, claiming Pension Credit and Attendance Allowance would be eligible for £1,100 in support - the £650 means-tested payment, £150 disability payment and the £300 pensioner payment. July and autumn - £650 means-tested cost of living payment
As previously mentioned, this is being paid in two instalments of £326 and £324.
Most people should have received their first payment by now, however, DWP recently said that more complex claims or those awaiting an award decision may be delayed.
It’s worth noting that older people who made a new claim for Pension Credit before August 18, which is later successful - even if they are only awarded one penny in cash support - will qualify for the £650 payment. This is because it is a retrospective benefit which can be claimed three months in arrears, taking it to within the qualifying period in May (outlined below).
Qualifying benefits and Tax Credits
You may be eligible if you are in receipt of any of the following:
- Universal Credit - you must have been entitled to a payment of at least 1p during the assessment period of April 26, 2022 to May 25, 2022
- Income-based Jobseeker’s Allowance (JSA) - received a payment between April 26, 2022 to May 25, 2022
- Income-related Employment and Support Allowance (ESA) - received a payment between April 26, 2022 to May 25, 2022
- Income Support - received a payment between April 26, 2022 to May 25, 2022
- Pension Credit - received a payment between April 26, 2022 to May 25, 2022
- Child Tax Credit
- Working Tax Credit
Special note about Tax Credits
The first cost of living payment of £326 will be paid between September 2nd and 7th.
To get the first Cost of Living Payment of £326, you must have been entitled, or later found to be entitled, for any day in the period April 26, 2022 to May 25, 2022 to:
- A payment of Tax Credits
- An annual award of at least £26 of Tax Credits
If you get both Child Tax Credit and Working Tax Credit, you will receive a cost of living payment for Child Tax Credit only.
If you get Tax Credits from HMRC and a low income benefit from DWP, your payment will be made by DWP.
If you only receive Tax Credits, you will get the first payment of £326 from HMRC in September and the second payment of £324 from winter 2022.
Which benefits are not eligible?
You will not be eligible for a payment if you get New Style Employment and Support Allowance, Contributory Employment and Support Allowance or New Style Jobseeker’s Allowance, unless you also get Universal Credit.
September - £150 disability cost of living payment
This payment will be made from September 20 with most of the six million recipients expected to see the one-off payment land in bank accounts by the first fortnight in October.
To qualify for the payment, you must have received a payment (or later receive a payment) of one of these benefits on May 25, 2022:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment
- Child Disability Payment
- Armed Forces Independence Payment
- War Pension Mobility Supplement
If you get a qualifying disability benefit from the Ministry of Defence (MOD) and a qualifying disability benefit from DWP, you will get one £150 payment from DWP only.
October - £400 energy rebate
All households with a domestic electricity connection across the UK are eligible for the £400 discount. There is no need to contact energy suppliers as it will be paid automatically.
How will I receive the discount?
The £400 discount will be administered by suppliers and paid to customers over six months with payments starting from October 2022.
This discount will be applied as follows:
- October - £66
- November - £66
- December - £67
- January - £67
- February - £67
- March - £67
The discount will be provided on a monthly basis regardless of whether consumers pay monthly, quarterly or have an associated payment card.
If you do not receive the first instalment by the end of October, you should contact your energy supplier.
Prepayment meter customers
Smart prepayment meter customers will see the discount credited directly to their smart prepayment meters in the first week of each month of delivery.
Traditional prepayment meter customers will be provided with redeemable vouchers or Special Action Messages (SAMs) in the first week of each month, issued via SMS text, email or post. Customers will need to take action to redeem these at their usual top-up point.
November/December - £300 pensioner cost of living payment
All eligible pensioner households will get the one-off payment added as a top-up to their annual Winter Fuel Payment in November/December.
To be eligible for this year's Winter Fuel Payment and £300 additional support, you must have been born on or before September 25, 1956 and lived in the UK for at least one day during the week of 19 to 25 September 2022 - this is called the ‘qualifying week’.
If you do not meet either of these criteria, or if you live abroad, you may need to make a claim. If you’ve had a Winter Fuel Payment before, you do not need to claim again unless you’ve deferred your State Pension or moved abroad.
Who does not qualify for the £300 payment?
There are certain circumstances where an individual above State Pension age does not qualify for the Winter Fuel Payment which can be found on GOV.UK, here.
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