After confirming the payment schedule for five cost of living payments through the 2023/24 financial year, The Department for Work and Pensions (DWP) has announced in Parliament more detail on the support.
This includes estimates of how many people across the UK, and in each local authority and parliamentary constituency, will receive the first £301 Cost of Living Payment and the £150 Disability Payment, which follows on from up to £1,200 in support for low-income households in 2022.
Work and Pensions Secretary, Mel Stride said:
"These direct payments will help people right across the UK over this year and the start of the next, as we continue to provide consistent, targeted and substantial support for the most vulnerable.
"Our wider support package, including the Energy Price Guarantee, will ensure every household is being helped through this challenging period of high inflation, caused by Putin’s illegal war and the aftershocks of the pandemic."
Chancellor of the Exchequer, Jeremy Hunt added:
"High inflation, exacerbated by Putin’s illegal war, is hurting economies across the world and making people poorer.
"These payments are the next part of the significant support we are providing through this challenging time, with millions of vulnerable households receiving £900 directly into their bank accounts this financial year alongside additional help for pensioners and those with disabilities.
"This latest payment will provide some temporary relief, but the best thing we can do to help families and businesses is to stick to the plan to halve inflation this year."
Exact payment windows and qualifying periods for eligibility will be announced in due course, but are designed to ensure a consistent support offer throughout the year. Payment windows will be broadly as follows:
£301 – First 2023/24 Cost of Living Payment – during Spring 2023
£150 – 2023 Disability Payment – during Summer 2023
£300 – Second 2023/24 Cost of Living Payment – during Autumn 2023
£300 – 2023 Pensioner Payment – during Winter 2023/4
£299 – Third 2023/24 Cost of Living Payment – during Spring 2024
There are several benefits that could make claimants eligible for the £301 Cost of Living Payment, including Universal Credit and tax credits – through which 5.4 million households across the UK are expected to qualify, and Pension Credit, through which 1.4 million pensioner households are expected to be paid. 1.3 million will be eligible through legacy DWP benefits such as Jobseekers Allowance and Income Support, reaching a total of 8.1 million households.
Eligible individuals do not need to apply for payments, as they are made automatically. Those eligible for cost of living payments through tax credits, and no other means-tested benefits, will be paid by HMRC shortly after DWP payments are made.
This builds on the government’s wider support package, which includes further funding for the Household Support Fund, bringing its total value for October 2021 to March 2024 to over £2 billion. The fund is distributed to English councils, who know their areas best and are then able to offer direct support for those most in need in their local area.
Every household with a domestic electricity supply is also benefitting from the Energy Price Guarantee, which is saving the average household around £900 this winter and a further £500 in 2023/24 by capping energy costs.
Benefits will also rise in line with inflation from April, which will see a 10.1% increase for pensioners and those on the lowest incomes, whilst the National Living Wage will see its biggest ever cash rise, bringing it to £10.42 an hour.
This all follows on from 2022’s support package, which included:
A £650 Cost of Living Payment for means-tested benefit claimants, split into two payments, each of which supported over eight million households
Further £300 and £150 payments, which reached over eight million pensioner households and six million disabled people respectively
A £150 Council Tax rebate for all households in Council Tax bands A to D in England
A £400 energy bill discount for all households, which will continue to run through March 2023
More information
Legislation introduced today by the government includes powers to make millions of direct payments to those on means-tested or disability benefits. The £300 Pensioner Cost of Living Payment will be paid to all households in receipt of Winter Fuel Payments, in the same way as 2022/23 payments were made.
For each payment, exact payment start dates and eligibility dates will be communicated by the Department before payments begin. HMRC will communicate payment dates and eligibility dates for each Cost of Living Payment for tax credit-only customers.
These payments will all be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
More than 8 million households on benefits will receive payments of up to £900, made in three lump sums. Eligible households will be in receipt of one of the following benefits: Universal Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Pension Credit.
The three means-tested cost of living payments, worth £900 in total, will be delivered in three slightly different amounts, each relating to a specific qualifying period before the payment is made. This allows DWP and HMRC to ensure support is targeted at those who need it and are eligible; to determine if a payee received the correct payments and identify the payment value, and to reduce the risk of fraud.
More than 6 million people on qualifying disability benefits will receive a Disability Cost of Living Payment of £150 during Summer 2023. This includes those in receipt of one of the following benefits: Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Scottish Disability Benefits, Armed Forces Independence Payment, Constant Attendance Allowance, War Pension Mobility Supplement.
Low-income households are benefiting from government support in a variety of different ways. You can read more about the government’s cost of living support and what is available on GOV UK.