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Wales Online
Wales Online
Ryan O'Neill

All the financial support available between now and Christmas

Millions of people are facing increasing financial difficulties this winter due to the cost of living crisis. The Bank of England has warned the UK is facing the worst recession since the financial crisis with inflation, which already hit a 40-year high of 9% in June this year, expected to hit 13.3% in the last three months of 2022 and remain at high levels throughout 2023.

The Bank forecasts the UK will fall into recession this year and the economy is likely to keep shrinking until the end of next year - the longest economic downturn since the 2008 financial crisis. Many households are already struggling to cope with rising costs, something which will likely worsen in October with the energy price cap set to rise a whopping 80% from £1,971 to £3,549. You can read more about that here.

The government has already rolled out a number of financial support schemes to help those hardest hit by the crisis. More than seven million people on the lowest incomes received a £326 cost of living payment in July, with a second payment expected by the end of October. There is additional support for those with disabilities and millions of pounds have also been distributed through local councils.

Read more: Established Cardiff landlord warns energy bills mean 'Armageddon' for pubs

With bills likely to rise sharply this winter as more people start to switch their heating on, there are several financial support schemes that you might be eligible for - in some cases, you'll receive the money automatically without needing to do anything. Here is all the cost of living support available in Wales and the dates when you'll receive your money.

£650 cost of living payment

The UK government announced earlier this year it would be giving a £650 cost of living payment to low-income households across the UK. More than 7.2 million households on means-tested benefits received the UK first payment of £326 last month and a further one million families claiming tax credits will receive the financial support from HM Revenue and Customs (HMRC) in September.

The government has not confirmed the exact date when people can expect the second instalment - worth £324 - but it is expected to land in bank accounts by the end of October. You may be eligible for the two cost of living payments if you receive any of the following:

  • Universal credit
  • Income-based Jobseeker’s allowance (JSA)
  • Income-related employment and support allowance (ESA)
  • Income support
  • Pension credit
  • Child tax credit
  • Working tax credit

You do not need to do anything to get these payments if you are receiving these benefits - it will be paid automatically into your bank account.

£150 disability cost of living payment

Around six million disabled people will receive a £150 cost of living payment in September, also by the UK government. The one-off payment, originally announced in May, will be paid automatically to people who receive certain disability benefits from September 20. It will be paid to people claiming the following benefits:

  • Attendance allowance
  • Constant attendance allowance
  • Disability living allowance
  • Personal independence payment
  • Armed Forces independence payment
  • War pension mobility supplement

You must have received a payment (or later receive a payment) of one of these qualifying benefits for May 25, 2022 to get the payment. The payment is also automatic, meaning you don't need to do anything in order to get it. Most people will receive the payments within a couple of weeks of September 20.

Pensioner cost of living payment

The Winter Fuel Payment is an annual, tax-free sum of up to £300 paid by the UK Government to eligible households during winter. The support is intended to help those over the state pension age pay their heating bills during the coldest months and most payments are made in November and December.

If you’re entitled to a Winter Fuel Payment for winter 2022 to 2023, you will get an extra £300 for your household paid with your normal payment from November 2022. This is in addition to any cost of living payment you get with your benefit or tax credits. You can find out how much you'll get in your Winter Fuel Payment depending on your circumstances here. You'll get the additional money along with your fuel payment in November or December.

£200 cost of living payment

The Welsh Government has announced it is extending its fuel support scheme meaning 400,000 households in Wales are set to get £200 towards keeping their homes warm this autumn and winter. The idea is to provide people with support over the winter as the cost of living crisis escalates.

Previously around 166,000 households on universal credit, legacy means-tested benefit, and working tax credits benefited from the £200. This has now been expanded so more groups are eligible. Those claiming the following payments will now be eligible for the scheme:

  • Child tax credits

  • Pension credits

  • Disability benefits

  • Carers' allowance

  • Contributory benefits such as jobseeker's allowance and employment and support allowance (ESA)

  • Those receiving help from the council tax reduction scheme

You will need to apply to your local authority to get this payment when applications open on September 26. You can find out more about the Welsh Government's fuel support scheme here.

£400 energy bills discount

From October, every household in England, Scotland and Wales will receive £400, paid over six months starting from October 2022. So you’ll get the following each month:

  • October 2022 - £66
  • November 2022 - £66
  • December 2022 £67
  • January 2023 £67
  • February 2023 £67
  • March 2023 £67

The £400 discount will be administered by suppliers and paid to customers. There is no need to contact energy suppliers as it will be paid automatically. 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.

Universal credit Christmas bonus

People on universal credit and other means-tested benefits will be given a £10 Christmas bonus to help with bills, it was reported last week. The additional money, usually paid at the start of December, will come on top of your usual benefit payment for that month. It will not need to be repaid. To get the latest money news straight to your inbox subscribe to our dedicated newsletter here.

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