Millions of people across the UK will receive a £150 cost of living payment next month. Around six million people across the country who are on certain disability benefits will receive the payment boost, which will be paid per claim.
The announcement of the £150 boost comes after the Department for Work and Pensions issued payments of £326 to around eight million people in July with another £324 instalment due this winter. The UK government has been urged to increase support to low-income households, with the Bank of England warning on Thursday that the country faces a bleak year with inflation hitting 13% and the worst recession since the 2008 financial crisis expected.
Research by the National Institute of Economic and Social Research found that the number of households living pay cheque to pay cheque will nearly double from 3.9 million to 6.8 million in 2024, while energy consultants have warned that household energy bills are likely to remain more than two-and-a-half times their pre-crisis levels for at least the next two years.
Read more: 'This winter will be a heck of a shock': The people struggling to survive the cost of living crisis
September's cost of living payment of £150 which will be sent to around six million people claiming one of nine qualifying benefits. This is paid per claim, so if two people in a household are claiming any of the qualifying benefits, they will each receive separate payments for £150. People claiming any of the means-tested benefits, who are in receipt of a disability benefit, will also receive the £150 payment.
There are three different types of payment that you may receive in the coming months depending on your circumstances on a particular date, or during a particular period. You could be due one, two or all three of these to help with the cost of living. They are:
- £150 Disability Cost of Living Payment - if you get a qualifying disability benefit
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£650 Cost of Living Payment - if you get a qualifying low income/means-tested benefit or Tax Credits. These will be paid in two instalments of £326 and £324
- £300 Pensioner Cost of Living Payment - if you’re entitled to a Winter Fuel Payment for winter 2022 to 2023
You can find everything you need to know about these payments below. For the latest news, tips and tricks on all things money, subscribe to the WalesOnline Money newsletter.
£150 Disability Cost of Living Payment
You may get a lump sum payment of £150 if you’re getting any award level for one of the following nine benefits:
- 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
Around six million people are set to receive these payments, which will be made from September 2022. You must have received a payment (or later receive a payment) of one of these qualifying benefits for May 25, 2022 to get the payment. If you get a qualifying disability benefit from the Ministry of Defence (MOD) and a qualifying disability benefit from DWP, you will get a Disability Cost of Living Payment from DWP only.
£650 Cost of Living Payment
You may be eligible for a payment of £650 - which will be paid in two lump sums of £326 and £324 - if you get payments of any of the following seven benefits.
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
If you have a joint claim with a partner, you will get one payment of £326 and one payment of £324 for your joint claim. 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 get Universal Credit.
To get the first Cost of Living Payment of £326, you must have been entitled to a payment of at least 1p - or later found to be entitled to a payment - of Universal Credit for an assessment period that ended in the period April 26, 2022 to May 25, 2022. DWP is set to update the guidance online when the UK Government has announced the qualifying dates to get the second payment of £324.
The payments were made separately from your benefit and appeared in your bank, building society or credit union account, or on your Payment Exception Service voucher receipt, as ‘DWP Cost of Living’. You will not be eligible for the £326 Cost of Living Payment if your earnings reduced your Universal Credit to £0 for the qualifying assessment period, also known as a ‘nil award’.
To get the first Cost of Living Payment of £326, you must have also received, or later receive, a payment of tax credits or an annual award of at least £26 of tax credits for any day in the period April 26, 2022 to May 25, 2022. 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, you will get a Cost of Living Payment from DWP only, starting from July 14. If you only receive Tax Credits, you will get the first payment of £326 from autumn 2022 and the second payment of £324 from winter 2022, with a date for the first payment yet to be announced.
£300 Pensioner Cost of Living Payment
All eligible pensioner households will get the one-off ‘Pensioner Cost of Living Payment’ added as a top-up to their annual Winter Fuel Payment over November and December. To be eligible, you must be over State Pension age (aged 66 or above) between 19-25 September 2022 and in receipt of the Winter Fuel Payment
The £300 is not taxable and will be paid on top of any other one-off support a pensioner household is entitled to, for example where they are on Pension Credit or receive disability benefits. The payment does not affect eligibility for other benefits.
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