The UK government has announced that millions of qualifying households will receive a higher cost of living payment later this year.
The payments will be available to up to 1,350 qualifying households.
These payments are designed to help those who are receiving certain means tested benefits. The next payment will be worth £300 and will be given to those who are receiving low income benefits and/or Tax Credits.
When will the next cost of living payment be paid out?
The government has not given an exact date but it is believed that it will be paid out in the autumn of 2023.
In order to be eligible for the payment, you must be claiming income-based JSA, income-related ESA, income support, pension credit, universal credit, child tax credit or working tax credit during a specified period.
The final Cost of living payment is worth £299 and will be made available in the Spring of 2024. The date and time of payment will also be announced by the Government at a later date.
In addition to these low-income household payments, pensioners can expect to receive a CPL this winter. The CPL is worth £300 and is paid to those entitled to the Winter Fuel Payment.
A Winter Fuel Payment (WFP) is a lump sum paid to retired pensioners to cover the costs of heating their home.
Eligibility for the WFP is limited to those born before 24 September 1957.
You’ll get a letter in October or November letting you know how much you’re eligible for Winter Fuel Payment. The amount you get (including your pensioner COD) is based on your birth date and your situation during the qualifying dates.
Here are some specific examples of how the cost of living payments could be used:
To help pay for energy bills
To help buy food
To help pay for transport costs
To help pay for childcare costs
To help pay for other essential expenses