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 cost of living crisis, 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 energy bills.
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 Universal Credit, 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 state pension.
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.