Households struggling with the rising cost of living will get up to £1,350 to help pay their bills. The Government announced in its Autumn Statement it would spend around £26 billion in additional payments on top of a further £11 billion in increased benefits.
Full details of how and when they will be paid have yet to be given. However consumer expert Martin Lewis is predicting they might not come until next Autumn.
According to the Department for Work and Pensions the cost of living payments will help more than eight billion households across the UK. But there are strict rules over who will qualify for the cash.
People claiming means-tested benefits could get an additional £900 next year, reports the Manchester Evening News. It is believed the money will be paid in instalments in the same way as previous cost of living payments.
The Chancellor of the Exchequer, Jeremy Hunt, has said there will be three types of additonal payments available to people on low incomes or benefits such as disability benefit or State Pension.
He said in addition to the £900 means tested benefit there would be payments of £300 for pensioners and £150 for those on disability benefit. However with some people qualifying over all three sections then they could see their income boosted by £1,350.
In order to be eligible for the new cost of living payments, households must receive one of the following benefits:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
According to the DWP, the payments will be tax-free and not count towards the benefit cap or affect any existing benefit awards.
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