This year will the Department of Work and Pensions (DWP) hand out five cost of living payments to support low-income and vulnerable households with a boost of up to £1,350.
While this support will last throughout 2023 and early 2024, many are questioning whether more support will come for the rest of next year amid concerns about costs remaining high. Former Labour minister Sir Stephen Timms asked the government to reveal when a decision would be made regarding payments next year.
Government support this year and last came in the form of cash boosts for low-income families worth £900 as well as one-off payments for pensioners and those with disabilities. When Sir Stephen asked about the future payments in Parliament on Tuesday, July 4, employment minister Guy Opperman replied that it was "monumentally above my pay grade" to announce when a decision to extend support would be made.
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However, he suggested an announcement could be made by the Chancellor in the autumn statement. In the Commons, Sir Stephen asked: “When does he envisage making a decision about whether the cost-of-living payments will be continued for a further year? When this year is that decision likely to be made?”
Mr Opperman replied: “He will know, because he and I have worked together for many years – and I would like to say it is together – and he will know that I have been a humble junior functionary at the Department for Work and Pensions for a very long period of time, never to rise any higher.
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“There have been three female secretaries of state who I have the pleasure of serving prior to the present Secretary of State (Mel Stride). I think I am on my seventh secretary of state.
“These things are way and monumentally above my pay grade and are decided – as I am sure he knows, having done my job and many other jobs in Government – by the Chancellor and the Prime Minister at some stage over the course of this coming year.
“It is a fair point though that these matters will be considered, and it is clearly above my pay grade and beyond my knowledge, but obviously there is an autumn statement in November which would be the clear time for decisions to be telegraphed, if not decisions made.”
Sir Stephen responded: “To the minister, let me just say I am grateful to him for suggesting that perhaps the autumn statement is when we will hear about the plans for further cost-of-living payments. I think they are going to be needed.”
The first installment of this year's £900 payment was made in April, while the £150 disability payment was handed out to most people at the end of last month. The three remaining payments will be made later this year and early next with the second installment of the £900 due in autumn, the pensioner payment due from November, and the final installment of the £900 due in spring 2024.
