Millions of "vulnerable" people are set to receive a new £900 cost of living payment, the chancellor has announced.
Delivering his Autumn Budget, Jeremy Hunt revealed that households on means-tested benefits will receive a one off payment to help them stay afloat amid the current economic climate.
£300 will be given to pensioner households and £150 for individuals on disability benefit, Mr Hunt told the House of Commons.
READ MORE: 11 key announcements from Jeremy Hunt's Autumn statement
He also announced an extra £1 billion of funding to local council's to help with the Household Support Funding over the next twelve months.
The Chancellor told MPs: "For the most vulnerable we will introduce additional cost-of-living payments next year, of £900 to households on means-tested benefits; £300 to pensioner households; and £150 for individuals on disability benefit.
"We will also provide an additional £1 billion of funding to enable a further 12-month extension to the Household Support Fund, helping local authorities to assist those who might otherwise fall through the cracks."
To help with soaring energy bills, Mr Hunt also announced that the energy price guarantee will increase from £2,500 for the average household to £3,000 for 12 months from April.
It comes as he told the Commons that energy prices are set to keep rising as he blamed the 'recession made by Russia' referring to the conflict in Ukraine.
The chancellor announced further measures to help vulnerable households with the cost of living, including a promise to increase Universal Credit in line with inflation.
"Today I also commit to uprate such benefits by inflation with an increase of 10.1%, that is an expensive commitment costing £11 billion," Mr Hunt said.
"But it means 10 million working-age families will see a much-needed increase next year. On average, a family on universal credit will benefit next year by around £600.
"And to increase the number of households who can benefit from this decision I will also increase the benefit cap with inflation next year."
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