DWP update: Full details of new cost of living payments due from next month | Personal Finance | Finance

Millions of Britons are to receive new cost of living payments over the coming tax year as many household bills also go up from next month. This will include a £900 cost of living payment for those on certain means-tested benefits with the first instalment to be paid soon.

Chancellor Jeremy Hunt confirmed in the Budget last week a £94billion support package is helping Britons hit by the , including help with energy bills and one-off payments.

The energy price guarantee is to remain at its current level, meaning people will continue to be protected from the market price of energy.

This means a typical household in England, Scotland and Wales will continue to pay £2,500 a year on .

Below are details of the cost of living payments due to go out over the coming financial year.


£900 cost of living payment

The first part of this payment, worth £301, is going out to those on certain means-tested benefits in spring 2023. An exact date has yet to be revealed.

A person must be receiving one of these benefits to qualify for the payment:

  • Universal Credit
  • Working Tax Credit
  • Child Tax Credit
  • Income Support
  • Income-based Jobseeker’s Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Pension Credit.

The second instalment of £300 will go out in autumn 2023 while the final instalment worth £299 will go out in spring 2024.

Millions of Britons will also get a payment boost from next month as benefit payments increase by 10.1 percent.

This will include payments for , PIP, Attendance Allowance and Pension Credit.

The state pension is also increasing by 10.1 percent from next month for both the basic and new .

This will increase the full basic state pension from £141.85 a week to £156.20 a week while the new state pension will increase from £185.15 a week to £203.85 a week.

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