Cost of living payments have been dominating the conversation since they were first announced by former Chancellor, Rishi Sunak in May. The three types of payments, worth more than £37 billion in UK Government support, are aimed at helping households on a low income, people claiming disability benefits and those over State Pension age.
More than 20 million payments are due to be made by the end of the year following the first wave of the £650 means-tested cost of living payment, worth £326, made to more than eight million people in July to those claiming eligible Department for Work and Pensions (DWP) benefits and the start of September to Tax Credits-only claimants.
Around six million people claiming disability benefits also received the £150 one-off payment in September. A further eight million pensioner households are set to receive a £300 one-off payment on top of their annual Winter Fuel Payments over November and December.
Cost of living payments aren’t the only ones being made between now and the end of the year. There are several others on the way for families on a low income, unpaid carers and everyone with a domestic electricity connection.
Below is a quick guide on what to expect each month, including the £400 energy rebate which is being paid over six months.
October
£66 energy discount
This first instalment of the UK Government’s Energy Bills Support Scheme should be paid by the end of the month.
Delivery process for each payment method should be the same for the next six months:
- Direct Debit customers - will receive the discount automatically as a reduction to the monthly Direct Debit amount collected, or as a refund to their bank account following Direct Debit collection during each month of delivery
- Standard credit customers and payment card customers - the discount will be automatically applied as a credit to standard credit customers’ accounts in the first week of each month of delivery, with the credit appearing as it would if the customer had made a payment
- Smart prepayment meter customers - will see the discount credited directly to their smart prepayment meters in the first week of each month of delivery
- Traditional prepayment meter customers - will be provided with redeemable vouchers or Special Action Messages (SAMs) in the first week of each month, issued via SMS text, email or post. Customers will need to take action to redeem these at their usual top-up point.
£130 Bridging Payments for families in Scotland
All 32 local councils are delivering payments of at least £130 on behalf of the Scottish Government ahead of the October school holidays to children in receipt of free school meals.
Most payments are expected to be made before Monday, October 17. Applications can still be made with payments arriving once these have been processed.
For a full list of Bridging Payments, read more here.
£150 Warm Home Discount Scheme
The scheme officially opens in November, but some suppliers are taking applications now. The money is not paid to you - it’s a one-off discount on your electricity bill made directly to your supplier, between October 2022 and March 2023.
The list of energy suppliers participating in the winter 2022/23 Warm Home Discount scheme has not been updated on GOV.UK yet, but the £150 discount is automatically made to those on a low income or qualifying benefit.
If you live in Scotland, you qualify if you either:
- get the Guarantee Credit element of Pension Credit - known as the ‘core group’
- are on a low income and meet your energy supplier’s criteria for the scheme - known as the ‘broader group’
Full details on eligibility are available on GOV.UK here.
November
£324 cost of living payment - DWP benefits
The second instalment of the £650 means-tested cost of living payment - £324 - will be made to those on DWP benefits between November 8th and 23rd. DWP has said a small number of payments will be made on November 8th with the majority arriving during the two-week payment window.
People only claiming Tax Credits will receive their payment for £324 shortly after the payment window closes, but no specific date has been given yet.
For full details on eligible benefits and qualifying dates, read more here.
£300 pensioner cost of living payment / Winter Fuel Payments
In total, these combined payments are worth up to £600 in heating bill help.
The £300 one-off payment is being added to the annual Winter Fuel Payment which will arrive in November and December for eligible pensioner households - no specific payment windows have been given.
It is not taxable and does not affect eligibility for other benefits. However, the full amount you will get for winter 2022 to 2023 depends on your household circumstances - read the full payment guide here.
£66 energy discount
The second instalment of the UK Government’s Energy Bills Support Scheme should be paid by the end of the month - see October for full details.
Scottish Child Payment increases to £25 per week
From November 14, the Scottish Child Payment will increase from £20 to £25 and the eligibility will widen to include children up to the age of 16.
Payments will automatically increase for existing claimants and backdated to the point of application for new claims.
Current processing time is 31 working days, so making a new claim on November 14 should see first payments arrive in early January - find out more here.
£214 Child Winter Heating Assistance
Child Winter Heating Assistance is an annual payment of £214 for youngsters in Scotland on disability benefits to help with increased costs over the colder months.
The money is paid once a year and the Scottish Government has confirmed that the payment for winter 2022/23 will be £214.10 per eligible child or young person.
Children and young people in Scotland can get the heating assistance payment if they are under 19 years old and in receipt of one of the qualifying benefits between September 19 and September 25.
There’s no specific payment date, but it will be made automatically from the end of November.
Qualifying benefits:
- Child Disability Payment - highest rate of the care component
- Disability Living Allowance for children - highest rate of the care component
- Personal Independence Payment (PIP) - enhanced daily living component
- Adult Disability Payment - enhanced rate of the daily living component
Find out more about Child Winter Heating Assistance here.
December
£324 cost of living payment - Tax Credits claimants
This one is a bit of a wildcard as the only guidance on when these will be made is “shortly after” the payment window closes on November 23 for the DWP means-tested benefits.
This means they could arrive in the last week of November - we’ll update this article once we know more details.
£300 pensioner cost of living payment / Winter Fuel Payments
See November for details, these payments worth up to £600 in total will be made over November and December. All payments should arrive no later than January 13, 2023.
£10 Christmas bonus from DWP
This is a one-off, tax-free £10 payment automatically made to people in receipt of State Pension or 20 DWP benefits if they meet the eligibility during a specific qualifying period, which is typically the first full week of December.
Qualifying benefits:
- Adult Disability Payment
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Child Disability Payment
- Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes)
- Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim)
- Disability Living Allowance
- Incapacity Benefit at the long-term rate
- Industrial Death Benefit (for widows or widowers)
- Mobility Supplement
- Pension Credit - the guarantee element
- Personal Independence Payment (PIP)
- State Pension (including Graduated Retirement Benefit)
- Severe Disablement Allowance (transitionally protected)
- Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes)
- War Disablement Pension at State Pension age
- War Widow’s Pension
- Widowed Mother’s Allowance
- Widowed Parent’s Allowance
- Widow’s Pension
Find out more about the £10 DWP bonus here.
£245 Carer’s Allowance Supplement
This one-off payment for £245.70 is only for unpaid carers in Scotland who were in receipt of Carer’s Allowance on October 10, 2022 - the December qualifying date.
No specific date has been given yet, but last year’s payments were made on December 15, so it may be round about the same time this year too.
Find out more about Carer's Allowance here.
£260 Bridging Payments for families in Scotland
All 32 local councils are delivering payments of £260 on behalf of the Scottish Government ahead of the Schools stopping for the Christmas holidays to children in receipt of free school meals.
Most payments are expected to be made before December 23.
Find out more about Bridging Payments and how to get them, here.
£67 energy discount
The third instalment of the UK Government’s Energy Bills Support Scheme increases to £67 and should be paid by the end of the month - see October for full details.
February 2023
£50 Winter Heating Payment
£25 Cold Weather Payments are set to be replaced by a new devolved benefit this winter for people living in Scotland. The Scottish Government will introduce the new Winter Heating Payment from February 2023 which will give around 400,000 households on a low income a guaranteed £50 payment towards their energy bills.
Find out more about the new payment here.
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