Millions of Brits are in line for a boost to their finances in 2023/24 to the tune of £900. The first instalment is due to drop into bank accounts in Spring 2023.
According to the Department for Work and Pensions (DWP) over eight million people in the UK on eligible means-tested benefits will be given the extra cash. With the rising cost of living putting a strain on every household budget, the additional payments will be a welcome boost.
First announced in the government's Autumn Statement, delivered by chancellor Jeremy Hunt in November 2022, details of the latest cost of living assistance were revealed early in the new year. While exact dates that the money will be distributed haven't as yet been given, the guidelines the government is working to shows that the first payment will land during spring 2023 and will be followed up with further payments in autumn 2023 and spring 2024. The £900 will be split into near equal amounts for each payment - £301, £300 and finally, £299.
The first official date of Spring is March 20, which means payments could land from that date onwards, according to the Government's timetable.
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So, who is eligible for the payment? Those claiming certain benefits are in line for the financial boost. The government is updating its website with details of the cost of Living Payments for 2023 to 2024 as they are firmed up. Here's what we know so far.
Who is eligible for the cash
Brits claiming these benefits are listed as being eligible for the £900 total cash - money will be paid in three instalments.
These include:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
The payment will be made separately from your benefit. If you had a joint claim with a partner, you will get one payment of £326 and one payment of £324 for your joint claim, if you’re entitled.
You could get up to 3 different types of payment depending on your circumstances on a particular date or during a particular period:
- a Cost of Living Payment, if you were getting a qualifying low income benefit or tax credits
- a Disability Cost of Living Payment, if you were getting a qualifying disability benefit
- a Pensioner Cost of Living Payment, if you’re entitled to a Winter Fuel Payment for winter 2022 to 2023
These payments are not taxable and will not affect the benefits or tax credits you get.
How will it be paid?
The money will go direct to bank accounts in three instalments over the course of the financial year. If you are already claiming state support you won't need to apply.
What else do I need to know?
There will also be a separate £150 for over six million disabled people and £300 for around eight million pensioners on top of their Winter Fuel Payments to help with the cost of rising energy bills. You could get up to 3 different types of payment depending on your circumstances on a particular date or during a particular period:
- a Cost of Living Payment, if you were getting a qualifying low income benefit or tax credits
- a Disability Cost of Living Payment, if you were getting a qualifying disability benefit
- a Pensioner Cost of Living Payment, if you’re entitled to a Winter Fuel Payment for winter 2022 to 2023
These payments are not taxable and will not affect the benefits or tax credits you get.
When it be paid and how much
According to the government website, payment will be made in three instalments.
- £301 for people on an eligible low income benefit, to be paid during spring 2023
- £150 for people on an eligible disability benefit, to be paid during summer 2023
- £300 for people on an eligible low income benefit, to be paid during autumn 2023
- £300 for pensioner households, to be paid during winter 2023 to 2024
- £299 for people on an eligible low income benefit, to be paid in spring 2024
Further guidance will be published when more details have been announced, including the qualifying dates.
How to claim?
If you were eligible, you’ll be paid automatically in the same way you usually get your benefit or tax credits. This includes if you’re found to be eligible for a Cost of Living Payment or a Disability Cost of Living Payment at a later date.
You can find out more information on the cost of living payments at the government website.
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