Save, make, understand money

Household Bills

Millions to receive up to £1,350 cost of living cash: Do you qualify?

Paloma Kubiak
Written By:
Paloma Kubiak

Millions of low-income households across the UK will receive up to £1,350 cost of living payments from Spring 2023, the government has confirmed.

The next round of payments to help low-income households with soaring costs have been announced by the Department for Work and Pensions (DWP).

In total, up to £1,350 will be paid out in 2023/24, following on from the £1,200 received by eight million people last year.

The payments include £900 which will be paid direct to bank accounts held by over eight million means-tested benefit claimants, in three instalments:

  • £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

DWP said the exact payment windows will be announced closer to the time, adding that the differing amounts will relate to a specific qualifying period so it’s easier to pay and reduces the risk of fraud.

If individuals are eligible, cash will be paid automatically, so there’s no need to apply.

Eligible households need to 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 or Pension Credit.

Payments for disabled people and pensioners

Meanwhile, over 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

Taking all of these together, it means some low-income households are set to receive a maximum £1,350 in the next financial year.

DWP confirmed for pensioners, the sum is on top of the Winter Fuel Payments, with all payments being tax-free. They will also not count towards the benefit cap, and will not have any impact on existing benefit awards.

‘Vital support’

Work and Pensions Secretary Mel Stride, said: “We are sticking by our promise to protect the most vulnerable and these payments, worth hundreds of pounds, will provide vital support next year for those on the lowest incomes.

“The Government’s wider support package has already helped more than eight million families as we continue to deal with the global consequences of Putin’s illegal war and the aftershocks of the pandemic.”

Chancellor of the Exchequer Jeremy Hunt, added: “I know these are tough times for families across the UK who are struggling to meet rising food and energy costs, driven by the aftershocks of Covid and Putin’s war in Ukraine.

“That’s why we’re putting a further £900 into the pockets of over eight million low-income households. These payments are on top of above inflation increases to working-age benefits and the Energy Price Guarantee, which is insulating millions from even higher global gas prices.

“Tackling inflation is this government’s number one priority and is the only way to ease the strain of high prices, drive long-term economic growth and improve living standards for everyone.”

The government first announced its intention for additional Cost of Living payments during the Autumn Statement in 2022.