MILLIONS of struggling households will receive cash handouts to help them through the winter.
Chancellor Jeremy Hunt unveiled the new cost of living payments as part of his Autumn Statement today.
1
It means millions on means-tested benefits will receive a £900 payment, pensioners will get £300 and those with disabilities £150.
If you’re eligible for all three payments, that could mean a total handout of £1,350.
Mr Hunt told the Commons “one of the biggest worries for families” was energy bills and said the government would “stick with the plan to spend £55bn to help households and businesses with their energy bills”.
He also announced:
Who is eligible for the £900 payment?
The £900 payment will be going to millions on means-tested benefits.
That includes those on:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Tax Credits (Child Tax Credit and Working Tax Credit)
- Housing Benefit
- Council Tax Support
- Social Fund (Sure Start Maternity Grant, Funeral Payment, Cold Weather Payment)
- Universal Credit
For the previous payments, you had to be entitled, or later found to be entitled to one of these benefits by a certain date.
Most read in Money
So, if you already claim benefits, you could be in line for this payment too, although it isn’t guaranteed.
Who is eligible for the £300 payment?
The current Pensioner Cost of Living payment is being given to all pensioners who normally get the Winter Fuel Payment.
This means you qualify if:
- you were born on or before September 25, 1956
- you lived in the UK for at least one day during the week of 19 to 25 September 2022 in what is known as the “qualifying week”
Jeremy Hunt has now confirmed millions of elderly Brits will receive another one-off £300 payment next April.
Again, you qualify if you were born on or before September 25, 1956, but it’s not yet known whether households will qualify if they normally receive the Winter Fuel Payment.
Who is eligible for the £150 payment?
People with disabilities who qualified for the current £150 one-off payment needed to receive one of the following:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
Mr Hunt confirmed a second £150 payment will be made next year, but the criteria for receiving it is not yet known.
How do I apply?
Details on how payments will be made are scarce.
But the current batch of cost of living payments are being paid automatically, so eligible households don’t have to apply for the money.
That would suggest those eligible for the payments this time around will just have to sit tight and wait.
You may need to ensure you’re receiving the correct benefits in order to receive the handouts.
What else was announced?
The Chancellor offset the handouts with sweeping spending cuts and tax rises to try and fill the £60billion black hole in the nation’s finances.
He announced benefits and pensions will rise in line with inflation figures from September – 10.1%, in a win for millions.
However, he froze tax thresholds until 2028, which will drag more workers into higher tax bands.
The cost of living cash comes in addition to the payments already announced by the government in May and amidst soaring energy and food bills.
Inflation hit 11.1% in October, meaning people’s pockets are being stretched.
Millions are contending with higher mortgage rates as well following the government’s disastrous mini-budget and the Bank of England raising its base rate to 3% from 2.25%.
