The Government is providing £37 billion this year to help households combat the rising cost of living.
We know this may lead to questions about how much people may be entitled to and how we can help. The below will help to answer any questions you may have regarding the cost of living payments.
You do not need to apply for Cost of Living payments. If you are eligible, you will be paid automatically in the same way that you usually receive their benefit or tax credits.
These payments are not taxable and will not affect the benefits or tax credits you already receive.
To get the first Cost of Living Payment of £326, you must have been entitled to a payment (or later found to be entitled to a payment) of either Universal Credit for an assessment period that ended in the period 26 April 2022 to 25 May 2022. Or, you must of been entitled to a payment of income-based JSA, income-related ESA, Income Support or Pension Credit for any day in the period 26 April 2022 to 25 May 2022. If you are a Tax Credit customer, To get the first Cost of Living Payment of £326, you must have received a payment, or an annual award of at least £26, of tax credits for any day in the period 26 April 2022 to 25 May 2022.
GOV.UK will be updated when the qualifying dates to get the second payment of £324 have been announced by the Government.
Low income means tested benefits
- First payment of £326 will be paid from July 14th.
- Second payment of £324 will be paid in the Autumn. The government will be advising customers when payment dates for the second payment of £324 are confirmed. This is expected to be by the end of September 2022.
You will receive this payment if you are on the following eligible benefits, in payment on each qualifying date:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
Tax Credits only
- First payment of £326 will be paid from Autumn 2022.
- Second payment of £324 to be paid in Winter 2022.
You will receive this payment if your household is receiving tax credits on each qualifying date
One-off disability payment
- A one of disability payment of £150 will be made if you are eligible.
- Paid in September 2022.
- This will be paid in addition to the above
Information for Eligibility for this payment can be found at GOV.UK.
Winter Fuel Payment
- A one-off £300 fuel payment
- This is part of the winter fuel payment from mid winter.
This one-off increase will go to more than 8 million pensioner households across the UK who receive the Winter Fuel Payment and will be paid on top of any other one-off support an eligible pensioner household is entitled to.
The two payments are slightly different as it will allow people to know they have received both payments. This will avoid the risk of fraud and duplicate payments.
If you get both Child Tax Credit and Working Tax Credit, you will receive one set of Cost of Living Payments, linked to Child Tax Credit only.
If you receive tax credits from HMRC or a qualifying low income benefit from DWP, you will receive a Cost of Living Payment from DWP or HMRC. If you also get a qualifying disability benefit, you may receive an additional Disability Cost of Living Payment from DWP.
It's possible for customers to be entitled to both tax credits and other eligible benefits which are administered by DWP. So, HMRC will make payments to eligible customers receiving tax credits only, shortly after DWP, to avoid duplicate payments.
In addition to the above payments, there is also the Energy Bills Support Scheme which will see all domestic energy customers receive a one-of rebate of £400 paid by their energy providers. This money will not need to be paid back
Households liable for Council Tax in Bands A-D in England have received a £150 Council Tax Rebate to help with the rising cost of bills.
You can find information for this here.