When Will The Next Cost Of Living Payment Be Made And Who Is Eligible?

When Will The Next Cost Of Living Payment Be Made

The Department of Work and Pensions (DWP) has confirmed that the new round of cost of living payments will be given out starting spring 2023. The £1,200 grant will be paid out in instalments over the course of the financial year. 

As the United Kingdom remains grappled by the cost of living crisis fueled by high energy prices and soaring inflation levels, the government has announced a new set of payments this year that will help relieve some strain put on household wallets. 

According to the Office for National Statistics (ONS), 93% of adults in the country have reported that their living costs have increased compared to a year ago. To tackle this problem, the government introduced a range of support payment schemes that totalled up to £1,200 in 2022. 

Starting spring 2023, over eight million UK households will receive cost-of-living grants of up to £1,200. The Department of Work and Pensions (DWP) Secretary Mel Stride confirmed the new round of payments, stating that the Rishi Sunak government has kept its word 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 following support has been announced by the DWP and HM Revenue and Customs department:

  • £900 for more than 8 million eligible means-tested benefits claimants 
  • £150 for more than 6 million disabled claimants 
  • £300 for more than 8 million pensioners on top of their winter “heating” allowance
When Will The Cost Of Living Payments Be Made And Who Is Eligible

When Will The Cost Of Living Payments Be Made And Who Is Eligible?

The exact date for the £900 cost of living payments will be announced by the DWP closer to time, but eligible parties can expect the money to be distributed in three different periods over the course of the financial year.

  • First payment of £301 during spring 2023
  • Second payment of £300 during autumn 2023
  • Third payment of £299 during spring 2024 

The amount will be paid to claimants that already receive the following benefits:

  • Universal credit
  • Income-based jobseeker’s allowance 
  • Income-based employment and support allowance
  • Income support
  • Pension credit 
  • Working tax credit
  • Child tax credit 

Those that are eligible for any of the payments and receive tax credits, and no other means-tested benefits, will receive a payment from the HM Revenue and Customs Department (HMRC) shortly after the DWP payments are issued. The format will be similar to last years’ £650 grant, and will be tax free with no count towards the benefit cap and will have no impact on claimants’ existing benefits. 

When Will The Disability Payment Be Made And Who Is Eligible? 

The £150 disability payment will be made in spring 2023 to Birtons that receive any 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 

Similar to the cost of living payments, the disability grant will be tax free, will not count towards the benefit cap, and will not have any impact on the claimants’ existing benefits. 

When Will The Pensioner Payment Be Made And Who Is Eligible?

DWP is adding a £300 boost to the winter fuel payment or the “heating allowance” that was given out last year. The annual tax-free payment issued by the pensions department to senior citizens will be paid out in winter 2023. Eligible persons normally receive £100-£300 each year, which is dependent on where they were born, their living situation and type of benefits they already receive. The £300 grant will come on top of the existing winter fuel payment. 

According to the government, you don’t have to apply for any of the cost of living payments if you are eligible as they will be made automatically. However, if you have not received the payments before, then you will need to claim any of the following:

  • You do not get benefits or a state pension
  • You only get housing benefit, council tax reduction, child benefit or universal credit 
  • You get benefits or a state pension but live in Switzerland or any of the European Economic Areas
  • You get an adult disability benefit payment from the Scottish government 

Visit www.gov.uk to know more

Also Check: Brazilian Bank Bradesco Launches First Tokenized Credit Note 

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