New cost of living payments for 2023
The Department for Work and Pensions (DWP) has announced more detail on the payment schedule for the next round of cost of living support unveiled in the Chancellor’s Autumn Statement, building on payments made to over eight million people in 2022.Millions will receive the new cost of living support from Spring 2023.
- £900 Cost of Living Payment for means-tested benefit claimants will go directly to bank accounts in three payments over the financial year
- Extra cash support for disabled people and pensioners will see some households receive extra cash
The new £900 cash boost for over eight million eligible means-tested benefits claimants, including those on Universal Credit, Pension Credit and tax credits, starts in Spring and will go directly to bank accounts in three payments over the course of the financial year.
There will also be a separate £150 for over six million disabled people and £300 for over eight million pensioners on top of their Winter Fuel Payments.
Exact payment windows will be announced closer to the time, but are spread across a longer period to ensure a consistent support offering throughout the year. They will be broadly as follows:
£301 – First Cost of Living Payment – during Spring 2023
£150 – Disability Payment – during Summer 2023
£300 – Second Cost of Living Payment – during Autumn 2023
£300 – Pensioner Payment – during Winter 2023/4
£299 – Third Cost of Living Payment – during Spring 2024
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.
Energy suppliers will deliver this support to households with a domestic electricity meter over six months from October. Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher.
This support will apply directly to households in England, Scotland, and Wales. It is GB-wide and we will deliver equivalent support to people in Northern Ireland.
This support is in addition to the £150 Council Tax rebate for households in England in Council Tax bands A-D, which was announced in February, and which millions of households have already received.
Winter Fuel Payments
If you were born on or before 25 September 1956 you could get between £250 and £600 to help you pay your heating bills. This is known as a ‘Winter Fuel Payment’.
The amount you’ll get includes a ‘Pensioner Cost of Living Payment’. This is between £150 and £300. You’ll only get this extra amount in winter 2022 to 2023. This is in addition to any Cost of Living Payment you get with your benefit or tax credits.
Help for Households
Countries around the world are facing rising goods and energy prices, inflation and cost of living pressures after the pandemic and Putin’s invasion of Ukraine.
We know people are worried so the government is offering help to households. See what cost of living support you could be eligible for.
On benefits? You may be due cheap, long-term 'social tariffs'
More than four million people qualify for cheaper social tariffs, and it is estimated that switching to one saves an average of £144/year.
Eight providers currently offer discounted social tariffs, including BT and Virgin Media. TalkTalk offers six months of free broadband for jobseekers.
Further information can be found on Discounted 'social tariffs' for those on certain benefits (moneysavingexpert.com)
Ask DWP to review a previous request to stop (waive) Recoverable Hardship Payment repayments made between 1 January 2014 and 11 January 2021
This scheme is for people who received a hardship payment from Universal Credit and have paid it back.
If you asked DWP to stop (‘waive’) repayments, and DWP refused your request, you might be able to apply for a refund.
You would only have received a hardship payment if your Universal Credit was reduced because of a sanction or fraud penalty.