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Who is eligible for the new £900, £300 and £150 cost of living payments?

Jeremy Hunt announced extra cost of living payments as part of the Autumn statement

Emily Atkinson
Tuesday 22 November 2022 12:01 GMT
Heath Secretary Steve Barclay admits NHS under 'extreme pressure'

Millions of families are set to receive extra cost of living payments as part of a new package of measures aimed at helping struggling households weather the cost of living crisis.

The boost, announced by chancellor Jeremy Hunt in the autumn Budget on Thursday, could mean those eligible will pocket up to £900 in 2023-24.

Mr Hunt also announced that universal credit and the state pension will rise in line with September inflation of 10.1 per cent.

According to HM Treasury, this latest round of support will be worth £26 billion in 2023-24, in addition to benefits uprating, which is worth £11 billion to working age households and people with disabilities.

No 11 said that more than eight million households across the UK, many of whom are most vulnerable to the shocks of soaring bills, will be supported via additional cost of living payments. Three payments have been made available. These include means tested payments for UK households, a cash boost for pensioners, and a hike in disability benefits.

The details of the scheme have been outlined on the Treasury website. Those eligible for the three different payments are as follows:

Cost of Living Payments to households on means-tested benefits

According to the government, upwards of eight million households on mean-tested benefits will receive an additional cost of living payment of £900 in 2023-24.

This includes all households receiving the following benefits:

  • Universal Credit
  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Pension Credit
  • Working Tax Credit
  • Child Tax Credit

The money will land in accounts in more than one installment, though the dates have not yet been confirmed. The Department for Work and Pensions (DWP) and His Majesty’s Customs and Revenue (HMRC) will provide further detail on timing of these payments and eligibility dates in due course.

This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards, the government said.

Cash boost for pensioners

More than eight million pensioner households across the UK will receive an additional £300 to help with surging household bills, according to the Treasury.

If eligible, this payment will be made in addition to the means tested benefit and disability payments.

As with the means tested benefit payment, the DWP will provide further detail on timing of the payments and eligibility dates in due course, and the payment will be tax-free and will not have any impact on existing benefit awards.

Extra help for people on Disability Benefits

The Treasury says that more 6 million people nationwide on non-means-tested disability benefits will receive a further £150 disability cost of living payment in 2023-24, to help with the additional costs they face.

This is in addition to the cost of living payments for households on means tested benefits and pensioner households, if eligible.

This includes everyone eligible for:

  • Disability Living Allowance
  • Personal Independence Payment
  • Attendance Allowance
  • Scottish Disability Benefits
  • Armed Forces Independence Payment
  • Constant Attendance Allowance
  • War Pension Mobility Supplement

Dates and timings will be announced in due course and the payment will be tax-free.

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