THOUSANDS of households are being urged to look out for direct payments worth up to £900 hitting their bank accounts this month.
The help comes as part of the latest round of Household Support Fund which is worth £842million.
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Each council gets a different portion of funding depending on the size of the catchment area, population, and need.
Grants on offer vary by location so you’ll have to check to see what you can get and how your council will pay you.
It was due to end in March this year but was extended until April 2024 meaning households can get more support.
You’ll usually need to be on a low income to receive the help.
Eligible households can get £900 free if they live in the West Midlands and Sandwell Metropolitan Borough Council is their local authority.
This is being dished out as a direct payment to every household that was receiving Housing Benefit as of 1 April this year.
The council said the support is being given to households who didn’t get the £900 cost of living payment from the Department for Work and Pensions (DWP).
Payments are being made in two instalments as follows:
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- First half – between now and September 2023
- Second half – between October 2023 and March 2024
The amount of cash you can get will depend on your circumstances, which we have explained below:
- £900 – for working age people who receive housing benefit but don’t qualify for the DWP cost of living payment
- £600 – for pensioners who get Housing Benefit and will receive a Winter fuel payment of £300 but don’t receive pension credit
- £450 – for pensioners who get Housing Benefit and will receive £150 Disability Cost of Living Payment and £300 winter fuel payment but don’t receive Pension Credit
A letter will be sent to around 2,700 residents letting them know that they’re eligible for the cash, and how much they’ll get.
This means you don’t need to apply and you’ll be automatically contacted.
All you need to do is take the letter and your bank card to your local Post Office, who will then make the payment directly into your bank account.
But the council is warning households that they only have three months to claim the cash.
Can I get help if I don’t live in the West Midlands?
Yes, but the help available to you will depend on where you live.
Each council is distributing their share of the HSF differently.
Some are handing out vouchers, while others are making bank transfers to eligible residents.
The amount you are entitled to will vary depending on the area you live in too.
If you’re not sure which council is in charge of your area, you can tap your postcode into the government’s local council checker tool to find out.
The most common types of support provided each year are supermarket vouchers, fuel vouchers and one-off payments.
Bear in mind that many councils haven’t opened the application process for the next round of funding yet, so keep an eye out.
Who is eligible for the DWP cost of living payment?
A separate £900 cost of living payment for those on certain benefits is being paid out over the course of the year.
The payment is available for those who receive any of the following:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Tax Credits (Child Tax Credit and Working Tax Credit)
- Universal Credit
The first payment, worth £301, was paid between April and May.
The second instalment, worth £300, will be paid in autumn.
Spring next year will see the final chunk of the £900 cost of living payment dished out – it is worth £299.
We don’t know have an exact date for when the second and third payments will be made.
The Department for Work and Pensions (DWP) has it said it’ll provide more information on exact dates nearer the time.
You can check the full list of cost of living payments available on the government website.
What other help is out there?
Council tax discount
Many people don’t realise they can get a cheaper council tax bill.
There are a number of discounts you could get, depending on your circumstances.
To apply for any of the below discounts, go through the government website.
If you live on your own, you can get 25% off your council tax bill.
This also applies if there is one adult and one student living together in a property, or if there is one adult and one person classed as severely mentally impaired in the home.
If you live with someone who doesn’t have to pay council tax, such as a carer or someone who is severely mentally impaired, you could get a larger reduction too, of up to 50%.
And, if you live in an all-student household, you could get a 100% discount.
Pensioners may also find themselves eligible for a council tax reduction.
If you receive the Guarantee Credit element of Pension Credit, you could get a 100% discount.
If not, you could still get help if you have a low income and less than £16,000 in savings.
Grants and hardship funds
You can get a grant from your energy supplier if you’re really struggling and need help paying off debts.
Scottish Power, for example, gives up to £750 per household to the most hard-up households.
Most hardship funds have no deadline and you can apply all year round.
There is no specific eligibility criteria, but most customers who get help are in arrears on their bill.
Healthy Start Vouchers
Healthy start vouchers can help you cover the cost of fresh food and drink for your kids.
If you’re on a low income, the scheme could be worth as much as £442 a year.
Each healthy start voucher is currently worth £4.25 a week, and over a year that adds up to £221.
It’s worth double that if you have a child under the age of one as you’ll be eligible for two vouchers each week, which makes up the £442 maximum.
There used to be paper vouchers, but that has been replaced by a prepaid card, so you’ll get the amounts added to that instead automatically every four weeks.
Meanwhile, those struggling can apply for a range of schemes that provide free cash, vouchers and more and you could get thousands of pounds – see our full list.
Plus, here is the full list of benefits that don’t qualify for the cost of living payments.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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