You are here: Home - Household Bills - News -

Eight million households will get new Cost of Living payment – are you eligible?

Written by: Emma Lunn
The Government has estimated that more than 8 million households will receive the new cost of living payment this Spring.

The Department for Work and Pensions (DWP) announced the next round of Cost of Living support payments in January and has now released a full breakdown of who will receive the money by local authority and parliamentary constituency.

The most claimants are in London where approximately 1,187,000 people will receive the payments. This is followed by the North West where about 1,033,000 households will get the cash. The areas with the least eligible claimants are the North East and Northern Ireland, with an estimated 395,000 and 321,000 claimants respectively.

The first of five Cost of Living payments – worth £301 – will hit bank accounts this Spring, but the final payments won’t be made until next year.

The £310 payment in the Spring is the first of five direct Cost of Living payments for the most vulnerable households, including pensioners and disabled people, with the total amount of support reaching up to £1,350.

Mel Stride, work and pensions secretary, 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.”

Jeremy Hunt, Chancellor of the Exchequer, said: “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.”

Are you eligible for the Cost of Living payment?

There are several benefits that could make claimants eligible for the £301 Cost of Living payment, including Universal Credit, Jobseekers Allowance, Income Support, tax credits and Pension Credit.

Eligible individuals don’t 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.

Exact payment windows and qualifying periods for eligibility will be announced in due course, but are broadly as follows:

  • £301 – first Cost of Living payment – during Spring 2023
  • £300 – second Cost of Living payment – during Autumn 2023
  • £299 – third Cost of Living payment – during Spring 2024

More than six million disabled people and more than eight million pensioners will also receive extra support.

This includes:

  • £150 – Disability payment – during Summer 2023
  • £300 – Pensioner payment – during Winter 2023/4

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week