The UK Government has announced a range of one of payments in response to the cost of living crisis. There are some fairly substantial amounts of money available to some people which will be desperately needed as the cost of living crisis bites. But who is eligible, who isn't, and how do you go about claiming your money?
To help you know what you're entitled to and how to get it WalesOnline has gone through the latest UK Government guidance. Below you will find details of the £400 energy discount, the £650 cost of living payment, the £300 payment or disability payment.
Read more: When will my cost of living payment arrive? All dates including £650 energy bills help
How will I receive by £400 energy discount?
Rishi Sunak has said that all households in Wales will get a £400 payment to help offset the soaring price of energy bills. All households who have a domestic electricity connection will be automatically eligible for the grant (though if your bills are included in your rent it will go to your landlord).
How you receive your £400 discount will depend on how you pay your energy bills. If you pay by direct debit you will have your money paid straight into your account from the start of October. If you have a pre-payment metre the cash will be applied to your metre or you will receive a voucher.
How will I receive my £650 one-off Cost of Living Payment?
More than 8 million households in the UK on means tested benefits will receive a payment of £650 this year, made in two instalments. This includes all households receiving the following benefits:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
The DWP will make the payment in two lump sums – the first from July, the second in the autumn. Payments from HMRC for those on tax credits only will follow shortly after each to avoid duplicate payments. Claimants will need to be in receipt of one of these benefits, or have begun a claim which is later successful, as of May 25, 2022 to be eligible for the first of the two instalments.
This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
The government will make these payments directly to households across the UK and you don't need to do anything to apply for them.
How will I receive the £300 Pensioner Cost of Living Payment
So pensioner households will receive an extra £300 this year to help them cover the rising cost of energy this winter.
This additional one-off payment will go to the pensioner households across the UK who receive the Winter Fuel Payment 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. Eligible households currently receive between £200 - £300.
All pensioner households will get the one-off Pensioner Cost of Living Payment as a top-up to their annual Winter Fuel Payment in November/December. For most pensioner households, this will be paid by direct debit.
There are certain circumstances where an individual above State Pension age does not qualify for the Winter Fuel Payment which can be found here. The UK Government will make these payments directly to households across the UK.
How will I receive the £150 Disability Cost of Living Payment
Around six million people across the UK who receive the following disability benefits will receive a one-off payment of £150 in September:
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
Claimants must be in receipt of, or have begun an eventually successful claim for, one of these benefits as of 25th May 2022 to be eligible for this additional payment. For the many disability benefit recipients who receive means tested benefits, this £150 will come on top of the £650 they will receive separately. These payments will be exempt from tax, will not count towards the benefit cap, and will not have any impact on existing benefit awards. The government will make these payments directly to eligible people across the UK.
