A BRAND new £900 cost of living payment will be hitting households this year.
It’s designed to help hard-up bill payers through inflation and the rising cost of living.
GettyHouseholds face extremely high bills this winter[/caption]
While many of us will still be contributing more, Hunt confirmed extra support to those struggling the most in his Autumn Statement last year.
In particular, the Chancellor told the House of Commons that over eight million struggling households will be paid a £900 support payment.
As the months stay chilly, many Brits are feeling the pinch but are reluctant to put the heating on because of an increase in energy costs.
This payment will be a nice boost as many of us are having to cut costs elsewhere to simply make ends meet.
Here’s what we know so far.
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What is the £900 cost of living payment?
The £900 cost of living payment is a support payment paid to households in the UK that are struggling the most.
The payment is part of a £26billion package announced by the government to help people during the cost of living crisis.
This payment will be tax-free and will not have any effect on any existing benefit payments that you receive.
Am I eligible for the £900 payment?
The £900 payment will be going to millions on means-tested benefits – you’ll only be able to get it if you are claiming one of these benefits below.
Income-based Jobseeker’s AllowanceIncome-related Employment and Support AllowanceIncome SupportPension CreditTax Credits (Child Tax Credit and Working Tax Credit)Universal Credit
For the previous payments, you had to be entitled, or later found to be entitled to one of these benefits by a certain date.
How will I be paid?
Unlike last year’s help, this cost of living payment will be paid in three, not two, instalments.
There’s no need to apply for the help – instead, the DWP will be in touch.
When will the £900 be paid?
The first payment, worth £301, will be paid directly into bank accounts in Spring.
The Department for Work and Pensions (DWP) has it said it’ll provide more information on exact dates nearer the time.
The second instalment, worth £300, will be paid in autumn.
Spring next year will see the final chunk of the £900 cost of living payment dished out – it is worth £299.
Again, further details about the qualifying benefit date for the second and third payments will be announced nearer the time.
For example, this is similar to the £400 energy bill support payment that is being paid in instalments of £66 over a six-month period.
So, it’s most likely going to be similar to that.
Other cost of living payments coming this year
Who is eligible for the £300 payment?
The Pensioner Cost of Living payment is being given to all pensioners who normally get the Winter Fuel Payment.
This means you qualify if:
you were born on or before September 25, 1956you lived in the UK for at least one day during the week of 19 to 25 September 2022 in what is known as the “qualifying week”
Jeremy Hunt has confirmed millions of elderly Brits will receive the one-off £300 payment in April.
Again, you qualify if you were born on or before September 25, 1956, but it’s not yet known whether households will qualify if they normally receive the Winter Fuel Payment.
Who is eligible for the £150 payment?
People with disabilities who qualified for the previous £150 one-off payment needed to receive one of the following:
Attendance AllowanceConstant Attendance AllowanceDisability Living Allowance for adultsDisability Living Allowance for childrenPersonal Independence PaymentAdult Disability Payment (in Scotland)Child Disability Payment (in Scotland)Armed Forces Independence PaymentWar Pension Mobility Supplement
Parents as well as those qualifying with the above will be in line for the £150 disability cost of living payment.
You receive the payment in Scotland if you get a Child Disability Payment.
If you are in England and Wales and receive the Disability Living Allowance for children you’ll be in line for the £150 payment too.
Again, the payment is automatic.
The Chancellor has also announced benefits and pensions will rise in line with inflation figures – 10.1%, in a win for millions.
However, he’s frozen tax thresholds until 2028, which will drag more workers into higher tax bands.
The cost of living cash comes in addition to the payments already announced by the government last May and amidst soaring energy and food bills.
Inflation hit 11.1% in October, meaning people’s pockets are being stretched.