The cost of living has skyrocketed, with scores of households struggling to cope with rising food, fuel and energy bills.
However, you may be able to get some help as the Government has announced a number of schemes to support people in need. But who is eligible for this cash aid and how do you go about claiming the money?
To help you see what you're entitled to and how to get it, WalesOnline has gone through the latest UK Government guidance. Below you will find details of the £400 energy discount, the £650 cost of living payment and other initiatives.
Read More: DWP warns of cost of living payment delays for first instalment
£400 energy discount
When he was Chancellor, Rishi Sunak said that all households will get a £400 payment to help offset the soaring price of energy bills. All households which have a domestic electricity connection will be automatically eligible for the grant (though if your bills are included in your rent it will go to your landlord).
How you receive your £400 discount will depend on how you pay your energy bills. If you pay by direct debit you will have your money paid straight into your account from the start of October. If you have a pre-payment meter, the cash will be applied to your meter or you will receive a voucher.
£650 one-off Cost of Living Payment
More than 8 million households in the UK on means tested benefits will receive a payment of £650 this year, made in two instalments. This includes all households receiving the following benefits:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
The first payment is due in July and will be for £326, followed by another payment of £324 though when this will be paid and the qualifying requirements have not been released yet. For the July payment, you will need to have been qualified for one of those benefits on May 25, 2022.
Some benefits don’t qualify for the scheme, including the New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker’s Allowance.
This seems to be because these payments are "contributory" – meaning you’ve paid in a certain amount of money over the years in National Insurance and have savings over £16,000.
The UK Government says they are using a computer program to identify who qualifies for the payment which has made people a little nervous. You don’t need to apply for the payment as it will be paid automatically if you qualify. The first payments will be made between 14 July and the end of the month. We have no other news about the second payment, other than it will be made in autumn.
Information seems to be updating on the Government cost of living payment page sporadically. When you're picked up on the system, then the money should be sent to the bank account where you normally receive your benefits. But if you don't get the cash, the DWP says you should contact the office which pays your benefit.
£300 Pensioner Cost of Living Payment
Pensioner households will receive an extra £300 this year to help them cover the rising cost of energy this winter. This additional one-off payment will go to the pensioner households across the UK who receive the Winter Fuel Payment and will be paid on top of any other one-off support a pensioner household is entitled to, for example where they are on pension credit or receive disability benefits. Eligible households currently receive between £200-£300.
All pensioner households will get the one-off Pensioner Cost of Living Payment as a top-up to their annual Winter Fuel Payment in November/December. For most pensioner households, this will be paid by direct debit. There are certain circumstances where an individual above State Pension age does not qualify for the Winter Fuel Payment which can be found here. The UK Government will make these payments directly to households across the UK.
£150 Disability Cost of Living Payment
Around six million people across the UK who receive the following disability benefits will receive a one-off payment of £150 in September:
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
Claimants must be in receipt of, or have begun an eventually successful claim for, one of these benefits as of 25 May 2022 to be eligible for this additional payment. For the many disability benefit recipients who receive means tested benefits, this £150 will come on top of the £650 they will receive separately. These payments will be exempt from tax, will not count towards the benefit cap, and will not have any impact on existing benefit awards. The government will make these payments directly to eligible people across the country.
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