Chancellor Jeremy Hunt has announced a series of new cost of living payments to help millions of households across the country offset record-breaking inflation rates and soaring energy bills. The new package of financial support is worth £26 billion in 2023-24.
The Chancellor confirmed payments of £150 for individuals on disability benefits, £300 for pensioner households and £900 for those on means-tested benefits. The new cost of living payments follow on from this year’s support with a noticeable increase of £250 for people in receipt of means-tested benefits such as Universal Credit and Pension Credit.
No timeframe was offered by the Chancellor other than “next year” and guidance on GOV.UK simply states 2023/24. However, in a 10-minute reaction video to the Autumn Statement, Martin Lewis shared his predictions for when people can expect to receive the payments.
The consumer champion said: “As for exactly when they’ll be paid I don’t know yet. My guess, and it’s only a guess, is that they will be put in place in time for next winter.
“So those payments will come sometime, probably around October, September.”
He added that the £900 cost of living payment will most-likely be made in two instalments.
You can watch the full video on MSE.com here.
Below is what we know so far about the new cost of living payments coming next year.
New £900 cost of living payments for households on means-tested benefits
More than eight million UK households on means-tested benefits will receive an additional cost of living payment of £900 in 2023-24.
These will be made in more than one instalment.
This includes all households receiving 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
The Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) will issue further details on timings of these payments and eligibility dates in due course.
This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
New £300 cost of living payment for pensioners
More than eight million pensioner households across the UK will receive an additional £300 cost of living payment in 2023-24.
This is in addition to the means-tested benefit and disability payments, if eligible, which could give them a total income boost of £1,350.
The Uk Government said: “Pensioners are disproportionately impacted by higher energy costs, many are unable to increase their income through work, and many low-income pensioner households do not claim the means tested benefits they are entitled to, so offering universal support for this group is the right thing to do.”
DWP will provide further detail on timing of the payments and eligibility dates in due course.
This payment will be tax-free and will not have any impact on existing benefit awards. These payments will be made on a UK-wide basis.
New £150 disability cost of living payments
Over six million people across the UK on non-means-tested disability benefits will receive a further £150 disability cost of living payment in 2023-24.
This is in addition to the cost of living payments for households on means tested benefits and pensioner households, if eligible.
This includes everyone eligible for:
- Disability Living Allowance
- Personal Independence Payment
- Adult Disability Payment
- Child Disability Payment
- Attendance Allowance
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
DWP will provide further detail on timing of the payments and eligibility dates in due course.
This payment will be tax-free and will not have any impact on existing benefit awards.
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