With new Prime Minister Liz Truss about to take office, financial changes such as tax breaks and help with surging energy costs could be on the table. Liz Truss promised to deal the such topic "from day one".
However, as it stands at the moment, we do know that Brits can take advantage of the cost of living help set out by the previous administration. But, with so many different elements of the Cost of Living scheme being talked about and dates flying around, working out exactly what you can and cannot claim and when that money might arrive can be a headache. With rising bills, it's a topic that needs explaining especially if you're in line to get some financial help to tackle soaring costs.
So far, seven million households across the country have had the first instalment of the two means-tested cost of living payments being offered by the Government. The payment of £326 has come directly from the Department for Work and Pensions (DWP). A second payment for £324 will be made in the autumn to make up the total figure of £650.
Dates relating to payments may vary depending upon individual circumstances. For instance, if you only receive benefits such as Tax Credits, the payment of £326 will land in banks in September 2022, with the second payment to make up the total £650 made in the winter.
READ MORE: 5 things new PM Liz Truss could do when she gets into office
There are also a range of further benefit payments being made to people in the UK between September and December. Among them is a £150 cash payment for those on disability benefits. A further £300 will be to Winter Fuel Payments for homes lived in by pensioners. There's also the £400 energy bill rebate.
Overall, help is being given to those not on benefits as well as those receiving Universal Credit, JSA, ESA, PIP, Pension Credit, Working Tax Credit, and more. Thanks to our colleagues and sister paper Lancs Live, here is a quick and concise guide to the cost of living payments being made by Government before the end of 2022.
Check if you are eligible for financial support
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 the autumn months: £650 cost of living payment for those eligible
As previously mentioned, this is 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.
Older people making 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
A special note about Tax Credits
The first cost of living payment of £326 will be paid in September.
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.
Beware, these 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
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 the discount will be applied to customers
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 and 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 qualify, you must be of State Pension age (66 or above) during the qualifying week of 19-25 September 2022 and in receipt of the Winter Fuel Payment.
The £300 payment and who it doesn't apply to
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.
In addition to the above, you may also be able to get additional cash support from your local council.
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