A package of urgent support has been unveiled to address Britain's cost of living crisis, with various payments for low-income families, pensioners and the disabled, as well as the extension of the Household Support Fund.
Chancellor Rishi Sunak said he would not be changing benefit payment levels for this year, but they were likely to be significantly higher for the 2023/24 financial years. The Centre for Social Justice (CSJ), a think tank founded by former Tory leader Sir Iain Duncan Smith, had advised that benefits needed a boost as though they had been given a 10 per cent rise in April 2022, rather than the 3.1 per cent applied at the time, reports Birmingham Live.
This move would have meant an additional £729 paid out over the remainder of this financial year (2022/23). However, Sunak instead went for cash support aimed at specific groups, including those living with disabilities - so what help will be available to weather the cost of living storm?
The Chancellor explained: "Disabled people also face extra costs in their day-to-day lives, like having energy-intensive equipment around the home or workplace. So to help the six million people who receive non-means-tested disability benefits we will send them, from September, an extra one-off disability cost-of-living payment worth £150.
"Many disabled people will also receive the payment of £650 I've already announced, taking their total cost-of-living payments to £800."
Who will get the £150?
Around six million people who receive the following disability benefits will receive a one-off payment of £150 in September:
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Scottish Disability Benefits
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
What other rules and eligibility criteria are there for getting the money?
Government guidance states claimants must be in receipt of, or have begun an eventually successful claim for one of the benefits listed above as of May 25 2022 to be eligible for the additional payment.
For many disability benefit recipients who are means-tested, this £150 will come in addition to the £650 they will receive separately. The cash sum will be tax exempt, won't count towards the benefit cap and will not have any impact on existing state support.
The Government says it will make the payments to eligible people across the country directly, so there's no need to apply. It will appear in the same bank or building society account to which normal benefit payments are deposited.
Read more: Rishi Sunak's Cost of Living package - who gets what and when?
What do campaigners say?
Many of those who receive health and disability benefits also have mental health issues, with psychiatric disorders being the primary condition documented on PIP claims.
Mental health charity Mind's Head of Policy, Campaigns and Public Affairs, Vicki Nash, issued a statement on the new measures which read: "Today’s announcement by the Chancellor of the Exchequer of financial assistance for households across the country is welcome, though we remain concerned that people on the lowest incomes will continue to struggle.
"We are pleased to see the UK Government recognising the extra costs faced every day by disabled people through a £150 grant to those claiming disability benefits, as well as the decision to give a grant of £650 to eight million households on the lowest incomes to support with rising living costs. It is also reassuring to hear the Government committing themselves to raising all benefits in line with inflation next year.
Read more: North East disabled people 'will suffer and die' as prices continue to rise
Read more: North East reacts as energy price cap expected to rise by £830 to £2,800 in October
"Unfortunately, much of this support will be too little and will come too late to stop many from facing hardship. At Mind we’ve seen a 30 per cent rise compared to this time last year in the number of people getting in touch with our helplines about difficulties they’ve been experiencing with finances and personal debt.
"Many of our callers tell us they are right on the edge with their finances, and this is having a direct impact on their mental health. These people need more than just token gestures of grants that arrive somewhere down the line. With the energy price cap due to go up by another £800 later this year and living costs continuing to spiral, much of the temporary support being offered to people will be eaten up quickly.
"There are also many months between now and when some of the assistance will reach those in need – how will families who’ve been hit twice by income cuts in the last year afford to feed and heat themselves until the support arrives?
"So while we do welcome this emergency package by the Chancellor, he must not rest on his laurels and believe the problem is solved. People struggling on the lowest incomes need real, systematic change that can stop them from facing destitution during this financial crisis."
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