In May, the Government announced a package of support worth over £15 billion to help UK households with the rising cost of living. As a result, millions of people will get up to £1,200 in extra support this year through various schemes and one-off payments. These payments will be made directly to eligible individuals across the UK so no action is required. The payments will also be tax-free and where relevant, will not have any impact on existing benefit entitlements. We’ve explained the different schemes initially included in the package of support below.
£650 one-off Cost of Living Payment for those on means tested benefits
Households receiving means tested benefits will receive two payments totalling £650 this year. This includes 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
It is anticipated that the first payment will be made from this month (July) onwards and the second at some in the autumn. You will need to be in receipt of one of the above benefits (or have begun a claim for one of the above benefits, which is later successful) as of 25 May 2022, in order to be eligible for the first of the two instalments.
£150 Disability Cost of Living Payment
Claimants across the UK who receive one of the following disability benefits will receive a one-off payment of £150:
- Disability Living Allowance (including Child Disability Living Allowance)
- Personal Independence Payment
- Attendance Allowance
- Scottish Disability Benefits
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
If you claim disability benefits and also receive means tested benefits, this £150 will be paid on top of the £650 Cost of Living Payment mentioned above.
£300 Pensioner Cost of Living Payment
All households receiving the Winter Fuel Payment will receive an extra £300 in November or December 2022 to help cover the rising cost of energy this winter. Again, where relevant, this £300 will be paid on top of the other Cost of Living Payments mentioned above.
Energy Bills Support Scheme doubled to a one-off £400
All domestic households will get £400 of support with their energy costs through an expansion of the Energy Bills Support Scheme. The money is double the amount of support originally announced earlier this year. It will also now be in the form of a grant so will not require repayment through future energy bills.
Alternatively, you can get free impartial advice by calling Citizens Advice consumer helpline on 0800 223 1133