The rocketing cost of living has put millions of people under serious financial strain. To soften the blow of soaring bills and prices, the government is offering a support package which it says is worth £37 billion in total.
More than eight million households are set to receive the £650 cost of living payment, targeted at people receiving some means-tested benefits. However, there are various other schemes available depending on your personal circumstances.
Some of these measures you’ll need to apply for, while you should receive others automatically if you’re eligible. Here are the cost of living payments you will need to apply for - and those you won’t.
READ MORE: DWP issues warning to everybody expecting £326 cost of living payment
Cost of living payments you need to apply for
1. £150 council tax rebate if you're not on direct debit
Households in council tax bands A to D are entitled to a rebate of £150. People who pay their council tax by direct debit should receive theirs automatically; local authorities started issuing rebates in April.
The rebate is not intended as a refund on your council tax as such. Instead, the government is using the council tax system as a quick and straightforward way of getting the money to people without delay.
If you don’t pay your council tax by direct debit, however, your local council should contact you to inform you how to claim your rebate. Some councils are asking for bank account details so they can pay the rebate there, while others are issuing vouchers.
2. Household Support Fund grants from local councils
The government has increased the Household Support fund by £500 million. The fund provides payments to struggling households to help them cover everyday living expenses, such as clothing, heating and food.
How much you receive will depend on your local council. You’ll need to apply to your local authority for a grant from the Household Support Fund; Nottingham City Council has previously issued vouchers redeemable at supermarkets and with energy firms.
3. Discretionary Fund Payments for those who don’t qualify for the council tax rebate
If your home isn’t in council tax bands A to D, or you’re exempt from council tax, you may qualify for a Discretionary Fund Payment. You can apply for a payment if you’re claiming housing benefit or the housing element of Universal Credit.
Individual councils decide how much to pay applicants, though in many cases payments of £150 are being issued to those eligible. You can find your local council and apply here.
Cost of living payments you don’t need to apply for
1. £150 council tax rebate if you pay by direct debit
Households in council tax bands A to D should receive their £150 rebate automatically if they pay by direct debit. Local councils are responsible for determining which households are eligible, and all payments should arrive by September 30.
2. £400 energy rebate via suppliers
All households in England, Scotland and Wales will receive a £400 energy rebate via their chosen supplier from October. The payment will be spread out over six months rather than being paid in one lump sum, and will be credited to direct debit and credit customers’ accounts.
Those households which pay for their energy via pre-payment meters will have the money credited to those. There is no need to apply for the rebate, so watch out for scam calls, texts and emails urging you to apply and asking for your bank details.
3. £650 cost of living payment for people on means-tested benefits
People in receipt of some means-tested benefits will receive a £650 cost of living payment from the government. The money will be paid in two instalments; the first instalment will be worth £326 and the second £324.
More than eight million households are set to receive the extra money. If you claim one of the following benefits, you will be entitled to it:
Universal Credit
Pension Credit
Income Support
Income-based Jobseeker’s Allowance
Income-related Employment and Support Allowance
Child tax credit
Working tax credit
Most of those entitled to the cost of living payment will get the first instalment by July 31; the Department for Work and Pensions started issuing these payments on July 14. The second instalment will then follow in the autumn at an as-yet-unspecified date.
However, you’ll have longer to wait if you’re eligible for the money through claiming tax credits alone. In these cases, the first instalment will arrive in the autumn and the second will follow in the winter.
4. £150 for people on disability benefits
Around six million people on disability benefits are set to get a £150 disability cost of living payment in September. You’re entitled to this money if you’re in receipt of one of the following benefits:
Disability Living Allowance
Personal Independence Payment
Attendance Allowance
Scottish Disability Benefits
Armed Forces Independence Payment
Constant Attendance Allowance
War Pension Mobility Supplement
5. £300 for pensioners who get winter fuel payments
Pensioners who receive the annual winter fuel payment will also get a £300 pensioner cost of living payment on top of this. You’re automatically entitled to the winter fuel payment if you’ve reached the state pension age, which is currently 66 for both men and women.
However, you must have lived in the UK for at least one day of the week between September 19 and 25 this year (this is known as the ‘qualifying week). Also, you won’t get winter fuel payments if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain because the average winter temperature is higher than the warmest UK region.
Former Chancellor Rishi Sunak has said that the £300 cost of living payment will reach pensioners by this autumn. This money will be issued automatically to those eligible.
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