The cost of living crisis is biting many people hard this winter, as soaring energy bills kick in amid many other price rises. Every household in the UK has benefited from £400 of government support this winter.
However, there are just two more payments to come on that support - in February and March - meaning people will be wondering what other support might be coming. The Government has said that additional help up to the value of £1,350 will be coming for some people in 2023 and into 2024.
In his Autumn Statement, Chancellor Jeremy Hunt said there would be a further £900 for more than eight million eligible low-income households in 2023. That comes, he said, on top of increases to working-age benefits alongisde the Energy Price Guarantee, which has so far kept the average bill capped at £2,500.
The Government has said that the £900 payment will be given to people on means-tested benefits. It will be in three separate payments over the coming financial year.
Using official data, BirminghamLive has mapped out how many households are due to get the money across the UK below.
Who's eligible for the £900 payment?
More than eight million households on benefits will receive payments of up to £900 split into three lump sums. It will be paid out in three slightly different amounts, each with its own specific qualifying period. This is being done so it's easier to check if a person has received the correct payments and reduce the risk of fraud or errors.
Households will need to have received an eligible benefit payment within a certain timeframe, which has not yet been announced. These payments will all be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards, the DWP said. There will also be a separate £150 for over six million disabled people and £300 for more than eight million pensioners on top of their Winter Fuel Payments. Some who get the £900 will get these other amounts as well if they also receive other benefits.
When is the next cost of living payment?
Exact qualifying dates will be announced closer to the time, so there are no exact dates published by the Government yet. The general payment periods will be as follows:
- £301 – First Cost of Living Payment – during Spring 2023 (for those on means-tested benefits)
- £150 – Disability Payment – during Summer 2023 (for those on disability benefits)
- £300 – Second Cost of Living Payment – during Autumn 2023 (for those on means-tested benefits)
- £300 – Pensioner Payment – during Winter 2023/4 (for pensioners who get the Winter Fuel Payment)
- £299 – Third Cost of Living Payment – during Spring 2024 (for those on means-tested benefits)
So spring will be when the first payment arrives. This indicates it will be sometime between April 5, when the new financial year starts, and June 21, which is the astronomical start of summer.
What exactly are means-tested benefits?
'Means' is a word for money or capital. So these are income-based benefits, where the amount paid is dependent on a person's financial situation. A person may find their benefits reduced or their claim refused because of the amount of money they earn from wages or investments or have stashed away in savings - for instance, Universal Credit is reduced when savings exceed £6,000 and stops altogether if savings reach £16,000.
The main means-tested benefits, which all qualify for the £900, are Universal Credit, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), Income Support, Pension Credit, Child Tax Credit (from HMRC) and Working Tax Credit (from HMRC).
So this means those on New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker’s Allowance are not eligible for the £900 sum, because these payouts are not means-tested.
Other benefits that are NOT means-tested include Attendance Allowance, Carer's Allowance, Disability Living Allowance (DLA), Personal Independence Payment (PIP) and State Pension. The first four of those are disability benefits so recipients will get the £150 due in the summer of 2023, while those claiming a State Pension will be in line for £300 on top of the Winter Fuel Payment.
