Cost of living support announcements

Cost of Living support announcement

Last week, the Chancellor announced a package of support worth over £15bn to help households with the rise in the cost of living.

This package is in addition to the over £22bn announced previously, with government support for the cost of living now totalling over £37bn this year.

This means that almost all the eight million most vulnerable households will get £1,200 of one-off support in total this year to help with the cost of living, with all domestic electricity customers receiving at least £400.

These payments will be made directly to eligible people across the UK, so claimants don’t need to take any action.

Included in the package of support:

£650 one-off Cost of Living Payment for those on means tested benefits:

More than 8 million households on means tested benefits will receive a payment of £650 this year, made in two instalments. This includes all households receiving the following benefits:

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

The payment will be made in two lump sums, the first from July, the second in the autumn. Payments from HMRC for those on tax credits only will follow shortly after each to avoid duplicate payments. Claimants will need to be in receipt of one of these benefits, or have begun a claim which is later successful, as of 25 May 2022 to be eligible for the first of the two instalments. This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

£150 Disability Cost of Living Payment

Around six million people across the UK who receive the following disability benefits will receive a one-off payment of £150:

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

For the many disability benefit recipients who receive means tested benefits, this £150 will come on top of the £650 they will receive separately. As with the other Cost of Living Payment these payments will also be exempt from tax, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

Energy Bills Support Scheme doubled to a one-off £400:

  • Households will get £400 of support with their energy bills through an expansion of the Energy Bills Support Scheme.
  • As well as doubling the £200 of support announced earlier this year, the full £400 payment will now be made as a grant, which will not be recovered through higher bills in future years.

£500m increase and extension of Household Support Fund

To support people who need additional help, the Government is providing an extra £500 million of local support, via the Household Support Fund, which will be extended from October 2022 to March 2023.

Further information about these measures can be found on GOV.UK including a cost of living support factsheet.

Please share this information with your colleagues and clients, and please do let them know that these payments will be made directly to eligible people across the UK, so claimants don’t need to take any action.

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