Millions of low-income households to get new Cost of Living Payments from Spring 2023.
To help with the cost of living, millions of the lowest-income households across the UK will get up to £1,350 from the Government in 2023/2024.
- Millions will receive the new cost of living support from Spring 2023. These payments follow the financial support made to up to over eight million low income households in 2022.
- £900 Cost of Living Payment for means-tested benefit claimants will go direct to bank accounts in three payments over the financial year.
- Extra cash support for disabled people and pensioners will see some households receive extra cash.
Exact payment periods will be announced closer to the time but are spread out to help throughout the financial year.
They will be roughly as follows:
- £301 – First Cost of Living Payment – during Spring 2023
- £150 – Disability Payment – during Summer 2023
- £300 – Second Cost of Living Payment – during Autumn 2023
- £300 – Pensioner Payment – during 2023/2024
- £299 – Third Cost of Living Payment – during Spring 2024
If individuals are eligible, they will be paid automatically – there is no need to apply.
Claimants who are eligible for any of the Cost of Living Payments and receive tax credits, and no other means tested benefits, will receive payment from HMRC shortly after DWP payments are issued.
Eligible households will be on 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.
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 information on these payments can be found on the UK Government’s website, here.
For more money advice, get in touch with our Money Advice Team.
This story is from our Spring 2023 issue of valleys. and y bae. magazine, click the links to read the latest issue.