Chancellor Jeremy Hunt announced a series of new cost of living payments to help millions of households across the country mitigate soaring inflation and ever-increasing energy bills. The new cost of living support package is worth £26 billion in 2023-24, in addition to benefits uprating, which is worth £11 billion to working age households and people with disabilities.
This means that over eight million households across the UK, will be supported by additional cost of living payments. The Chancellor also announced that the UK Government will continue to provide support to all households through the Energy Price Guarantee, which caps the price you pay for each unit of energy.
This will increase from £2,500 to £3,000 from April and will remain in place for 12 months. It is expected to save the average UK household £500 in 2023-24.
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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