In 2023/4, millions of the lowest-income households in the UK will receive up to £1,350 from the government to assist with living expenses.

The Department of Work and Pensions (DWP) released additional information on the payment schedule for the next phase of cost of living support. Announced in the Chancellor’s Statement, building on payments provided to more than eight million individuals in 2022.

The £900 cash increase for over eight million eligible means-tested benefit claimants. Including those on Universal Credit, Pension Credit, and tax credits begins in the spring. And will be forwarded directly into bank accounts in three installments over the financial year.

In addition to Winter Fuel Payments, over six million disabled individuals will get £150, and eight million pensioners will receive £300.

Precise payment windows will be communicated closer to the time to guarantee constant support throughout the year. In general, they will be as follows:

  • First Cost of Living Payment of £301 in Spring of 2023
  • Disability Payment of £150 in Summer 2023
  • Second Cost of Living Payment of £300 during the autumn of 2023
  • £300 Pensioner Payment during Winter 2023/4
  • In Spring 2024, the Third Cost of Living Payment will be £299.

Mel Stride, stated: “We are committed to keeping our promise to safeguard the most vulnerable. And these payments, totaling hundreds of pounds, will provide critical assistance to individuals with the lowest incomes in the coming year.”

“The government’s broader support package has already assisted more than eight million families. As we continue to deal with the global effects of Putin’s illegitimate war and the pandemic’s aftershocks.”

Jeremy Hunt, the Chancellor, added: “I know this is a difficult moment for families across the UK.”

“Next year, we will put an additional £900 into the pockets of roughly 8 million low-income households. These payments are in addition to larger-than-inflation increases in working-age benefits and the Energy Price Guarantee. Which protects millions of people from even higher global gas costs.” “Combating inflation is the government’s top priority and the only way to alleviate the burden of high prices, stimulate long-term economic growth, and raise everyone’s standard of life.”

Eligible individuals will be paid immediately and will not need to submit an application. Claimants who qualify for any of the Cost of Living Payments and tax credits, will receive payment from HMRC shortly after DWP payments are given.

These payments are an expansion of the government’s support package to assist households in coping with the global rise in living expenses.

The Energy Price Guarantee continues to control energy bills, saving the average household approximately £900 this winter. And £500 in 2023/24. Benefits, including those for those of working age and the State Pension, will increase in time. With inflation beginning in April 2023, an increase of almost 10% is expected. In April, the National Living Wage will receive its most significant cash increase. Raising it to £10.42 per hour.

While the Household Support Fund in England will receive a year-long extension and £1 billion in devolved national funds.

This is in addition to the support package for 2022, which includes the following:

  • A £650 Cost of Living payment for means-tested benefit recipients split into two payments that assisted more than eight million households each.
  • Additional payments of £300 and £150 were made to nearly eight million seniors and over six million disabled individuals, respectively.
  • A £150 Council Tax rebate for every household in bands A through D
  • A £400 savings on energy bills for all homes will last through March.
  • Millions will receive the new cost of living help beginning in the spring of 2023. After over eight million low-income households received up to £1,200 in 2022.
  • £900 The Cost of Living Payment for means-tested benefit recipients will be deposited directly into their bank accounts in three installments during the year.

Some households may receive additional income due to increased financial assistance for the disabled and elderly.

Additional Information

The Department will notify actual payment start dates and eligibility requirements for each payment. HMRC will provide information to tax credit-only consumers. These payments will be exempt from taxes, will not count toward the benefit cap, and will have no effect on existing benefit awards.

More than 8 million households receiving welfare will get up to £900 in three lump installments. 

Households receiving one of the following benefits will be eligible:

  • Universal Credit
  • Jobseeker’s Allowance based on income
  • Employment and Support Allowance based on income
  • Income Support
  • Working Tax Credit
  • Child Tax Credit
  • Pension Credit.

The distinct value pertains to a specific qualifying period, so it is easier to identify if a payee got the relevant payments, decreasing the fraud risk of those who claim not to have received one of the three specified payments. While DWP and HMRC will be able to follow those who have. Low-income households receive assistance from the government in a variety of ways.