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Cost-of-living payments: What are they, who gets them and are they fair? Cost of living payments: What are they and who gets them?
(14 days later)
Eight million people on means-tested benefits will receive a final instalment of cost-of-living payments in February. Eight million people will soon receive the final instalment of cost of living payments totalling £900.
Those on benefits such as universal credit will be paid directly, without the need to make a claim, between 6 February and 22 February. Those on means-tested benefits including universal credit will be paid directly, without the need to make a claim, between 6 and 22 February.
It is the last of three instalments that total £900. However, the payments have not tackled the extent of the financial problems many people face, a group of MPs says.
But an influential committee of MPs has said these payments have been insufficient to tackle the extent of the financial problem many people face. Who can get the £900 cost of living payment?
What cost-of-living payments are available? It is available to households who receive these benefits:
Some groups are receiving payments to help with higher bills, including: universal credit
£900 in total in three instalments. One was paid in spring, one in November and the third is due in February to households on means-tested benefits income-based jobseeker's allowance
£300 for pensioner households in the winter income-related employment and support allowance
£150 to people on certain disability benefits has been paid income support
All are paid directly into eligible recipients' bank accounts, and people are being warned about scammers using the situation to try to trick people into handing over personal information. working tax credit
What can I do if I can't pay my energy bill? child tax credit
Who is eligible for the £900 payment? pension credit
The payment, in three instalments of £301, £300 and £299, is available to households who receive the following benefits: The final instalment of £299 follows two others last year, of £301 and £300.
Universal credit To qualify, people need to have claimed a benefits payment between 13 November 2023 and 12 December 2023. Those who received a payment for an assessment period ending between these dates are also eligible.
Income-based jobseeker's allowance Pensioner households may be able to have a new pension credit claim backdated.
Income-related employment and support allowance
Income support
Working tax credit
Child tax credit
Pension credit
The payment reference on a recipient's bank account is their national insurance number, followed by DWP COL.
The 1.1 million people who receive only working tax credit or child tax credit, rather than any of the other benefits have the reference HMRC COLS.
People are not eligible for these payments if they receive the new-style employment and support allowance, contributory employment and support allowance, or the new-style jobseeker's allowance - unless they get universal credit.
Anyone who thinks they should have received the help but did not should contact the office that pays their benefit or tax credits, or report it here.
To qualify for the next instalment, people need to have claimed a benefits payment between 13 November and 12 December, or received a payment for an assessment period ending between these dates. Pensioner households may be able to have a new pension credit claim backdated.
An estimated 850,000 pensioner households do not claim pension credit, which is a gateway to these extra payments.An estimated 850,000 pensioner households do not claim pension credit, which is a gateway to these extra payments.
Other eligibility details are outlined here. People are not eligible if they receive new-style employment and support allowance, contributory employment and support allowance, or new-style jobseeker's allowance - unless they get universal credit.
None of these cost-of-living payments affect the tax you pay, or the benefits or tax credits you receive. Anyone who thinks they should have received the help but did not should contact the office that pays their benefit or tax credits, or report it here.
What help are disabled people getting? The payment reference on a recipient's bank account is their National Insurance number, followed by DWP COL.
Up to six million people on the following disability benefits received another £150: The 1.1 million people who receive only working tax credit or child tax credit, rather than any of the other benefits have the reference HMRC COLS.
Disability living allowance Cost of living payments do not affect the tax you pay, or the benefits or tax credits you receive.
Personal independence payment What extra help are pensioners getting?
Attendance allowance Households that receive the winter fuel payment - which is paid to nearly all homes with at least one person of pension age - received an extra payment of between £150 and £300 during the winter.
Scottish disability payments
Armed Forces independence payment
Constant attendance allowance
War pension mobility supplement
Those payments were made between 20 June and 4 July.
What help are pensioners getting?
Households that receive the winter fuel payment - which is worth £200-£300 and is paid to nearly all homes with at least one person of pension age - received an extra £300 in November or December 2022, and will get another £300 this coming winter.
Lower-income pensioners who claim pension credit get the money in addition to the support provided for those on benefits.Lower-income pensioners who claim pension credit get the money in addition to the support provided for those on benefits.
What cost-of-living payments have people already received? A £150 payment was also made to up to six million people receiving disability benefits, between 20 June and 4 July.
Two payments totalling £650 were made in 2022 to more than eight million low-income households. All cost of living payments go straight into recipients' bank accounts.
Payments of £300 were also paid to pensioners during last winter, and a £150 payment was also made to those with disabilities. People are being warned about scammers trying to trick people into handing over personal information.
Some people would have received all of those payments, if they were eligible.
What other support have people had?
A £150 rebate, often through people's council tax bill, was made last year. The Household Support Fund, which is distributed by local councils, helped vulnerable people, including giving fuel vouchers to those in need.
All household energy bills were cut by at least £400 between October 2022 and March 2023.
The discount was made automatically by energy suppliers in England, Scotland and Wales. However, there are no plans to repeat this in the coming winter.
Separate arrangements were made for households in Northern Ireland, which has its own energy market.
They received a single payment of £600 starting in January, which was more than in the rest of the UK because a higher proportion of households use heating oil.
Direct debit customers in Northern Ireland had the money paid into their bank accounts. Other customers were sent a voucher.
Try our Family £1 recipe meal planTry our Family £1 recipe meal plan
Why are prices rising so much?Why are prices rising so much?
What happens if I can't afford to pay my mortgage?What happens if I can't afford to pay my mortgage?
What have MPs said about the system of payments? What have MPs said about cost of living money?
Following an inquiry, the Commons Work and Pensions Committee published a report in November which said payments were not enough for many people, given the scale of the problem. The report said the money only provided a temporary reprieve for some. Payments were not enough for many people, MPs on the Commons Work and Pensions Committee said in a report published in November.
It said payments were insufficient for those with extra costs associated with their disabilities and there was particular concern for some larger families. Disability charity Scope says some people cannot afford to power vital equipment. It said payments were not enough for those with extra costs associated with their disabilities. Disability charity Scope says some people cannot afford to power vital equipment.
There was particular concern for some larger families.
The report said the payments have had an important impact, but the system was relatively unsophisticated, meaning some of those in need slipped through the net.The report said the payments have had an important impact, but the system was relatively unsophisticated, meaning some of those in need slipped through the net.
Significantly, it argues that, in the future, the government should consider increasing benefits rather than giving ad-hoc payments. It said that in future, the government should consider increasing benefits rather than giving ad-hoc payments.
The government's response is that cost-of-living payments have provided "a significant financial boost to millions of households" and that the best long-term approach to financial security is to get people into work and boost their skills. However, the government said cost of living payments have provided "a significant financial boost to millions of households".
What else is the government doing to tackle energy prices?
The government launched an Energy Price Guarantee in October 2022, which limited a typical dual-fuel household's annual energy bill to £2,500 throughout last winter.
The scheme, which applied to England, Wales and Scotland, is still in place if needed, but has not been required since July.
That's because a typical bill fell below this level under regulator Ofgem's energy price cap in the summer, and fell further in October.
However, it is set to go up by 5% to £1,928 in January.
What is the energy cap and what's happening to bills?What is the energy cap and what's happening to bills?
What are cold weather payments and who is eligible?What are cold weather payments and who is eligible?
What about help for businesses? What can I do if I can't pay my energy bill?
A government scheme to cut energy bills for businesses finished at the end of March.
Under a new scheme that began in April, firms get a discount on wholesale prices rather than costs being capped as under the previous deal.
Heavy energy-using sectors, like glass, ceramics and steelmakers, get a larger discount than others.
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