Cost of living payments will provide a much-needed boost to millions of households across the UK between November and Christmas to help off-set soaring energy bills, the impact of rising inflation and ever-increasing food prices. Inflation rose to 10.1% for September, driven by food prices which leapt up by 14.5%.
It is unknown yet whether benefits will increase next April in-line with inflation and following Liz Truss’ resignation as Prime Minister on Thursday, it is unclear whether her commitment to the State Pension Triple Lock rule will ensure 12.5 million older people across the country get a much-needed income boost next year. Chancellor Jeremy Hunt is expected to make that announcement during his Budget statement on Monday, October, 31.
In the meantime, there are three sets of cost of living payments on the way. The £2,500 Energy Price Guarantee is in place until April and the monthly discounts of £66/£67 from the £400 energy rebate scheme will continue until the end of March.
Before the colder weather sets in, now is the perfect time to plan your winter budget. A lot of families are skipping Christmas this year to take the pressure off household finances and many people are trying to hold off as long as possible before putting the heating on.
Check if you or someone in your household are eligible for a cost of living support payment
You could get up to two different types of payment depending on your circumstances on a certain date or during a particular period.
£324 Second Cost of Living Payment
- If you get a qualifying low income/means-tested benefit or Tax Credits
- This is paid per claim, so a couple claiming would qualify for one payment
£300 Pensioner Cost of Living Payment
- If you’re entitled to a Winter Fuel Payment for winter 2022/23 this will be added to your entitlement
- This is paid per claim, so a couple claiming would qualify for one payment
Some people may be eligible for both payments, bringing a total of up to £924
For example, a person of State Pension age, claiming Pension Credit who qualifies for Winter Fuel Payment, would be eligible for the second means-tested payment of £324 and up to £600 for the Pensioner Cost of Living Payment and Winter Fuel Payment combined lump sum.
There are several different household living circumstances which determine the Winter Fuel Payment and Pensioner Cost of Living Payment, they are listed further down in this article.
Eligible benefits for November £324 payment from DWP
Payments are due to be made between November 8 and 23 for most people.
You may get a payment of £324 if you are currently claiming any of the following:
- Universal Credit
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Tax Credits - must be claimed alongside one other DWP benefit in this list, otherwise payment will be made by HMRC from November 23
The payment will be made separately from your benefit.
If you have a joint claim with a partner, you will get one payment of £324 for your joint claim, if you’re entitled. The easiest way to think of this is one payment per claim, so two individuals living in a house with two separate claims will get two separate payments.
Benefits that do not qualify for £324 cost of living payment
You will not get a payment if you get New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker’s Allowance, unless you get Universal Credit.
Qualifying period
Universal Credit
You will be eligible for the second Cost of Living Payment of £324 if you were entitled to a payment (or later found to be entitled to a payment) of Universal Credit for an assessment period that ended in the period August 26 2022 to September 25 2022.
Universal Credit ‘nil awards’
DWP guidance states that you will not be eligible for the second cost of living payment if your earnings reduced your Universal Credit to £0 for the qualifying assessment period - this is sometimes called a ‘nil award’.
If money has also been taken off for other reasons, such as payments of rent to your landlord or for money that you owe, you might still be eligible.
Income-based JSA, income-based ESA, Income Support and Pension Credit
You will be eligible for the second Cost of Living Payment of £324 if you were entitled to a payment, or later found to be entitled to a payment, of income-based JSA, income-related ESA, Income Support or Pension Credit for any day in the period August 26 2022 to September 25 2022.
Tax Credits-only £324 November Cost of Living Payment
Payments are due to be made between November 23 and 30 for most people receiving either Working Tax Credits or Child tax Credits.
You will be eligible for the second cost of living payment of £324 if you received, or later receive, for any day in the period August 26, 2022 to September 25, 2022 either:
- a payment of Tax Credits for the tax year 2022 to 2023
- an annual award of at least £26 of Tax Credits for the tax year 2022 to 2023
If you get both Child Tax Credit and Working Tax Credit, you will receive a cost of living payment for Child Tax Credit only.
If you get Tax Credits from HMRC and a low income benefit from the DWP, you will get a cost of living payment from DWP only.
If you had a joint claim between August 26 and September 25, 2022, a single payment of £324 will be sent using the same payment method used between these dates, if you’re eligible.
Your payment might come later, for example if you are awarded a qualifying benefit at a later date or you change the account your benefit or tax credits are paid into.
Up to £600 for Pensioner Cost of Living Payment and Winter Fuel Payment
The Winter Fuel Payment, including the extra Pensioner Cost of Living Payment, is not taxable and does not affect eligibility for other benefits. However, the full amount you will get for winter 2022/23 depends on your household circumstances.
Payments will be made automatically from November 14 until January 13, 2023.
Eligibility
To be eligible for this year's Winter Fuel Payment, you must have been born on or before September 25, 1956 and lived in the UK for at least one day during the week of 19 to 25 September 2022 - this is called the ‘qualifying week’.
Still time to qualify for £324 payment
People of State Pension age making a new claim for Pension Credit, worth on average £3,300 each year, will still qualify for the second payment as long as their application is received by December 19, 2022.
Pension Credit is a retrospective benefit, which means it can be backdated to three months - falling within the September 25 cut-off qualifying period.
Find out more about claiming Pension Credit here.
Who is not eligible for Winter Fuel Payment
You will not qualify if you:
- are in hospital getting free treatment for more than a year
- need permission to enter the UK and your granted leave states that you cannot claim public funds
- were in prison for the whole week from 19 to 25 September 2022
- lived in a care home for the whole time from 27 June to 25 September 2022, and got Pension Credit, Income Support, income-based Jobseeker’s Allowance (JSA) or income-related Employment and Support Allowance (ESA)
Winter Fuel Payment rates 2022/23
Amounts shown in all examples are the total payments, full details of payments can be found on GOV.UK here.
You qualify and live alone (or none of the people you live with qualify)
- Born between September 25, 1942 and September 25, 1956: £500
- Born on or before September 25, 1942: £600
You qualify and live with someone under 80 who also qualifies
- Born between September 25, 1942 and September 25, 1956: £250
- Born on or before September 25, 1942: £350
You qualify and live with someone 80 or over who also qualifies
- Born between September 25, 1942 and September 25, 1956: £250
- Born on or before September 25, 1942: £300
You qualify, live in a care home and do not get certain benefits
Benefits - Pension Credit, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA) or Income Support
- Born between September 25, 1942 and September 25, 1956: £250
- Born on or before September 25, 1942: £300
Winter fuel payments if you get certain benefits
Your payment may be different if you or your partner gets one of the following benefits:
- Pension Credit
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Income Support
You qualify, get one of the benefits and live alone (or none of the people you live with qualify)
- Born between September 25, 1942 and September 25, 1956: £500
- Born on or before September 25, 1942: £600
You qualify and live with a partner who qualifies, and either of you gets one of the benefits
- Born between September 25, 1942 and September 25, 1956: £500 - only one of you will get the payment
- Born on or before September 25, 1942: £600 - only one of you will get the payment
You qualify and live with someone (not your partner) who qualifies, and either of you gets one of the benefits
- Born between September 25, 1942 and September 25, 1956: £500 - you will both get the payment
- Born on or before September 25, 1942: £600 - you will both get the payment
You qualify, live in a care home and get one of the benefits
- Born between September 25, 1942 and September 25, 1956: Nil
- Born on or before September 25, 1942: Nil
You can keep up to date with any cost of living payment changes on the GOV.UK website here.
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