In an effort to help offset the financial burden of the worsening cost of living crisis, UK Chancellor of the Exchequer Rishi Sunak unveiled a £15 billion package of funding for households across Scotland and the UK.
Following the news that the energy price cap is expected to rise by a further £830 in October, Sunak announced that every household in the UK would be given a £400 discount on their energy bills.
The new £15 billion package follows the £22 billion of support from the UK Government previously announced in February.
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As reported by the Daily Record, millions of individuals and families most affected by soaring bills will be given £1,200 of financial aid in 2022 — in addition to the £400 energy bill discount.
Read on for a full breakdown of eligibility criteria for all of the possible payments that are available, as well as when they are expected to be paid.
July and autumn
£650 one-off payment for people on means-tested benefits
This 'Cost of Living Payment' will be spread out over two lump sums and will only be available to those who claim any of 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 will be issued by the Department for Work and Pensions (DWP) in July, while the second is set to follow in the autumn.
HMRC payments to those who are on Tax Credits will come soon after each one in order to prevent duplicate payments being made.
In order to qualify for the first instalment, you must already be claiming one of the benefits listed previously — or have started a claim prior to May 25 that is later successful.
More information will be made available by HMRC and DWP regarding the payments, and the UK Government will announce the eligibility date soon.
Other important points to note about the one-off payment are that it is tax-free, will not count towards your benefit cap, and will have no impact on your existing benefits.
September
£150 one-off payment for people on disability benefits
This will be issued in September to people claiming any of the following disability benefits:
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Adult Disability Payment (Scotland only)
- Child Disability Payment (Scotland only)
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
In order to qualify for the one-off payment, you must already be claiming one of the benefits listed previously — or have started a claim prior to May 25 that is later successful.
Those claiming disability benefits who also get means-tested benefits will receive both the £150 an £650 one-off payments but they will be made separately.
Like the £650 boost, it is tax-free, will not count towards your benefit cap, and will have no impact on your existing benefits.
October
£400 discount off energy bills
This is a discount that will automatically be applied to every domestic energy user in Scotland, England and Wales — while similar support will also be given in Northern Ireland.
Every household with a domestic energy meter will receive the one-off discount starting from October.
Customers who pay via direct debit or credit will have the money credited to their account, while those with a pre-payment meter will have the discount applied to their meter or paid via a voucher.
Unlike the previously announced £200 'loan-not-loan' — which this discount is replacing — it does not need to be paid back and will be paid automatically to energy suppliers.
November/December
£300 one-off payment for people of State Pension age
All pensioner households who qualify will receive this one-off payment in addition to their annual Winter Fuel Payment in November/December.
In order to qualify, you must be over the State Pension age between September 19-25, and must be receiving the Winter Fuel Payment.
Additionally, the £300 sum will be paid in addition to any other one-off support you are eligible for.
It is also tax-free and will not affect whether you are eligible for other benefits.
In some cases, even if you are above the State Pension age, you may not qualify — learn more on GOV.UK, here
You can read detailed examples of how the additional support packages will affect different types of households on he GOV.UK website here.
