The cost of living in the UK has risen sharply over the past few years and with things expected to get worse before they get better, millions of people are worried about keeping up with their household bills or simply making ends meet.
But whilst it can seem like there’s no help available for those living paycheque to paycheque, you might be surprised to know that you could be eligible for extra help in the form of a cost of living payment this year.
So, what is a cost of living payment and how much could you potentially be missing out on?
This guide will cover everything you need to know about the 2023 cost of living payment from what it is and who is eligible to how much you could be owed and if any extra help is available.
What is the 2023 cost of living payment?
The 2023 cost of living payment (also known as the low-income cost of living payment) is the name given to a series of grants provided by the government to help support people that are on low incomes and in receipt of certain means-tested benefits. These are benefits directly affected by your income and capital.
The first cost of living payment was rolled out to struggling households in 2022 as the inflation rate in the UK hit a 41-year high and will continue this year with £94 billion earmarked for families that meet the same eligibility criteria.
Am I eligible for the cost of living payment?
Only those in receipt of certain means-tested benefits between certain dates will qualify for extra financial help in the form of a cost of living payment this year.
However, whilst the money will be paid automatically, knowing what to expect can help you financially prepare for the year ahead and, more importantly, give you some peace of mind as energy prices continue to rise.
You will qualify for the 2023 cost of living payment if you received any of the following means-tested benefits between certain dates (TBC):
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
- Universal Credit
The cost of living payment will be made in the same way you receive your usual benefits payments but will be paid separately as opposed to simply added to your monthly benefit amount.
How much is the cost of living payment?
The 2023 cost of living payment will see millions of people receive a one-off payment of £900 but, like last year, it will be split up into three smaller payments of £301, £300, and £299 to spread the cost.
These payments will be made on different dates spread over the 2023/24 financial year (between 6 April 2023 and 5 April 2024).
What is the disabled cost of living payment?
As well as the initial cost of living payment, extra cost of living payments have also been announced for disabled people and pensioners to help the country’s most vulnerable individuals cover their skyrocketing energy costs.
The disabled (or disability) cost of living payment will include a one-off £150 payment paid directly to eligible people’s bank accounts at the start of the 2023/24 financial year.
You will qualify for the disabled cost of living payment if you receive any of the following disability benefits:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment (Scotland)
- Child Disability Payment (Scotland)
- War Pension Mobility Supplement
- Armed Forces Independence Payment
Like the low-income cost of living payment, the disabled cost of living payment will also be made in the same way you receive your usual benefits payments and paid separately.
What is the pensioner cost of living payment?
The pensioner cost of living payment is the name given to a grant of £150 paid to qualifying pensioners that receive Winter Fuel Payment (WFP) between certain dates.
Unlike the other cost of living payments which are set to be made separately from usual benefits payments, this year’s pensioner cost of living payment is due to be paid alongside WFP when it is paid in November. This, essentially, means you’ll receive £150 more than you usually do
When will I receive the cost of living payment?
The Department for Work and Pensions (DWP) has confirmed that the cost of living payment will be spread across the 2023/24 financial year with grants paid automatically in spring 2023, autumn 2023, and spring 2024.
However, there may be some instances where payments are made at a slightly later date.
For example, if you qualified after the date the first payment was due or if you changed the account your benefits are paid into, you will still receive the payment but it just might come later than originally planned.
What other help is available?
With energy bills continuing to rise, some households will still struggle to make ends meet despite qualifying for the cost of living payment.
However, there is other help available and if you’re eligible for the cost of living payment, there’s a good chance you’re also eligible for further financial help from the government.
For example, in England, you could receive extra financial help in the form of a grant from your local council to help you cover the cost of rising energy bills this year.
This is known as the Household Support Fund and runs throughout the colder months to help low-income households cover the cost of daily essentials.
In Scotland, on the other hand, you may qualify for a payment known as the Discretionary Housing Payment if you rent your home and get Housing Benefit or Universal Credit but still can’t afford your household bills.
You can apply for a Discretionary Housing Payment online and your local council will decide if you are eligible and how much you will receive.
