By Kevin Peachey
Millions of low-income households in the UK are now receiving the latest cost-of-living payments. Around eight million people who are on means-tested benefits, such as Universal Credit, will receive a direct payment of £300 before 19 November. This is the second payment out of three that will eventually total £900. The money will be directly deposited into eligible recipients’ bank accounts. However, people are being warned about scammers who may try to take advantage of the situation by tricking individuals into sharing personal information. A committee of MPs is currently investigating whether these payments are effectively reaching those who need them the most.
Here are the available cost-of-living payments:
– Three instalments of £900 in total for households on means-tested benefits. The first payment was made in spring, the second will be paid by 19 November, and the third will be made in spring 2024.
– £300 for pensioner households during the winter.
– £150 for individuals on certain disability benefits.
The first instalment of £301 for means-tested benefits was received by approximately eight million people between late April and June. The next instalment of £300 is being paid out between 31 October and 19 November.
To be eligible for the £900 payment, households must receive any of the following benefits:
– Universal credit
– Income-based jobseeker’s allowance
– Income-related employment and support allowance
– Income support
– Working tax credit
– Child tax credit
– Pension credit
The payment reference on recipients’ bank accounts is their national insurance number, followed by DWP COL. However, individuals who only receive working tax credit or child tax credit, without any of the other benefits, will be paid slightly later than others. Individuals who receive new-style employment and support allowance, contributory employment and support allowance, or new-style jobseeker’s allowance are not eligible for these payments unless they also receive universal credit. Any individuals who believe they should have received help but did not should contact the office that pays their benefit or tax credits or report it through the provided link.
To qualify for the latest instalment, individuals had to have made a benefits claim between 18 August and 17 September, or received payment for an assessment period that ended within these dates. Pensioner households may also be able to have a new pension credit claim backdated. These cost-of-living payments do not affect the tax or benefits an individual receives.
Disabled individuals who receive disability living allowance, personal independence payment, attendance allowance, Scottish disability payments, Armed Forces independence payment, constant attendance allowance, or war pension mobility supplement have received an additional £150 payment. This payment was made between 20 June and 4 July.
Pensioner households that receive the winter fuel payment, ranging from £200 to £300, received an additional £300 in November or December 2022 and will receive another £300 this coming winter. Lower-income pensioners who claim pension credit also receive this money in addition to their usual support.
In 2022, two payments totaling £650 were made to over eight million low-income households. Pensioners also received £300 in winter, and individuals with disabilities received £150. Eligible individuals would have received all of these payments.
Last year, a £150 rebate was given through council tax bills to help vulnerable individuals. The Household Support Fund, distributed by local councils, also provided assistance to those in need, including fuel vouchers. However, there are no plans to repeat this in the upcoming winter.
The government is currently conducting an inquiry to determine if some individuals are missing out on hundreds of pounds due to being just outside the qualifying criteria. They are also assessing whether the overall package is sufficient for low-income families.
The government launched an Energy Price Guarantee in October 2022 to limit the annual energy bills of typical dual-fuel households to £2,500 throughout last winter. The scheme, which applied to England, Wales, and Scotland, is still in place if needed, although it has not been required since July.
A government scheme to reduce energy bills for businesses ended in March. Heavy energy-using sectors, such as glass, ceramics, and steelmakers, receive a larger discount under this scheme.
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