Cost of living updates | The Welcome Centre

Cost of living payment for people on benefits

If you receive means-tested benefits, you will receive a £650 one-off Cost of Living Payment, made in two instalments.

The qualifying benefits are:

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

DWP will make the payment 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.

This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

To get the first Cost of Living Payment, you must have been entitled to a payment (or later found to be entitled to a payment) of either:

  • Universal Credit for an assessment period that ended in the period of 26 April 2022 to 25 May 2022 ii. income-based JSA, income-related ESA, Income Support or State Pension Credit for any day in the period of 26 April 2022 to 25 May 2022
  • For recipients of tax credits: To get the first payment, you must have received a payment, or an annual award of at least £26, of tax credits on any day in the period 26 April 2022 to 25 May 2022.

HMRC and DWP will provide further guidance, and the government will set out the qualifying dates for the second instalment, in due course.

This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

The government will make these payments directly to households across the UK.

Legislation will be introduced shortly to allow payments to be made to this timetable.

The government will announce the eligibility date for the second instalment in due course.

£300 Cost of Living payment for pensioners

Pensioner households will receive an extra £300 to help them cover the rising cost of energy this winter.

This one-off payment will go to the households across the UK who receive the Winter Fuel Payment and will be paid on top of any other one-off support they are entitled to, for example where they are on pension credit or receive disability benefits.

Eligible households currently receive between £200 – £300, so the payment will represent at least double the support for this winter.

The Winter Fuel Payment (including the extra Pensioner Cost of Living Payment) is not taxable and does not affect eligibility for other benefits.

All pensioner households will get the one-off Pensioner Cost of Living Payment as a top-up to their annual Winter Fuel Payment in November/December. For most pensioner households, this will be paid by direct debit.

People will be eligible for this payment if they are over State Pension age (aged 66 or above) between 19 – 25 September 2022.

£150 Disability Cost of Living Payment

People across the UK who receive the following disability benefits will receive a one-off payment of £150 in September:

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

Claimants must be in receipt of, or have begun an eventually successful claim for, one of these benefits as of 25th May 2022 to be eligible for this additional payment.

For the many disability benefit recipients who receive means tested benefits, this £150 will come on top of the £650 they will receive separately.

These payments will be exempt from tax, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

The government will make these payments directly to eligible people across the UK.

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.

The Welcome Centre (Huddersfield) is registered in England and Wales under charity number 1151282. We are based at 15 Lord Street, Huddersfield HD1 1QB. We use cookies to improve your experience using this website.
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