Government announces schedule of “cost of living payments”

Wed,25 January 2023
News Benefits
The Department for Work and Pensions (DWP) has given more detail on the payment schedule for the next round of Government “cost of living support” for 2023 to 2024, announced in the Chancellor’s Autumn Statement.

Exact “payment windows” will be advised closer to the time but are spread across a longer period than was the case in 2022 “to ensure a consistent support offering throughout the year”.

The Government’s previous 2022 support cost of living support payments were automatically made to those who qualified and have now all been paid.

However, those who believe they should have got an award but didn’t receive it can use this form to report a missing 2022 cost of living payment.

For 2023/2024, the Department said that a new £900 “cash boost” will be paid to claimants on eligible means-tested benefits, including those on:

  • universal credit 
  • income-based jobseeker’s allowance 
  • income-related employment and support allowance 
  • income support
  • pension credit
  • child tax credit
  • working tax credit

Payments will start in Spring 2023 and  will go direct to bank accounts in three payments over the course of the financial year.

There will also be a £150 payment to disabled people who receive personal independence payment, disability living allowance or attendance allowance.

In addition, £300 will be given to pensioners on top of their Winter Fuel Payments.

While exact payment dates will be announced closer to the time, they will be “spread across a longer period to ensure a consistent support offering throughout the year”.

They will be broadly as follows:

  • £301 – First Cost of Living Payment to those on means-tested benefits – during Spring 2023
  • £150 – Payment to those on extra cost disability benefits – during Summer 2023
  • £300 to those on means- tested benefits  – Second Cost of Living Payment – during Autumn 2023
  • £300 – Payment to pensioners – during Winter 2023/4
  • £299 – Third Cost of Living Payment to those on means-tested benefits  – during Spring 2024

Those eligible for payments should not have to apply as they will be paid automatically by the DWP.

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

Policy, and Campaigns Officer at DR UK Dan White said: “All financial support to Disabled people is welcomed, however,  the amounts being provided don’t touch the sides.  As the cold weather continues, the fact that the scheme to cap all household energy bills will be cut from April, means any payments will make very little difference.

“The Chancellor Jeremy Hunt said there would be "a new approach" targeting those in the most need, well that new approach should mean a substantial and reality based series of payments that actually reflect the lives of Disabled people who use more energy than anyone else to power essential equipment and to keep warm just to survive.

“A recent report, from the Resolution Foundation has only confirmed that Disabled people across the UK are far more likely to be poorer than the rest of the population, meaning that the targeted support is nowhere near enough.

“ The Government still has time to prevent a human catastrophe with better financial support.”

For more information see Cost of Living Payments 2023 to 2024 available from gov.uk.