A raft of new cost of living support payments have been announced by Chancellor Jeremy Hunt as part of a £26 billion package of financial support to help millions of households across the UK cope with soaring energy bills and rising inflation.
More than eight million households on means-tested benefits will receive an additional cost of living payment of £900, expected to be paid over two instalments in 2023-24. The qualifying benefits remain the same as those for the £650 cost of living payment made to eligible households in July (£326) and again this month (£324), which means thousands of unpaid carers will not directly receive the support.
However, people claiming Carer’s Allowance may be part of a household where someone on a means-tested benefit does qualify for the £900 payment. The support will be delivered by the Department for Work and Pensions (DWP).
DWP has been asked several times by MPs if there are plans to provide additional support to people claiming Carer’s Allowance, but has responded on every occasion that cost of living payments are targeted at households who are in receipt of a means-tested income replacement benefit.
It's worth pointing out that Carer's Allowance does not depend on National Insurance Contributions and is not means-tested - in other words, it is not based on your personal income or savings - but earnings may affect your entitlement.
Carer's Allowance usually counts in full as income when calculating your entitlement for means-tested benefits.
DWP has also previously highlighted that nearly 60% of carers on low incomes who are of working age and on Carer’s Allowance also claim an income-related benefit through which they may be entitled to receive a cost of living payment.
Carer's Allowance is expected to increase from £69.70 per week to £76.75 per week from April 10, 2023.
New £900 cost of living payments for households on means-tested benefits
More than eight million UK households on means-tested benefits will receive an additional cost of living payment of £900 in 2023-24.
These will be made in more than one instalment.
This includes all households receiving 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
The Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) will issue further details on timings of these payments and eligibility dates in due course.
This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
New £300 cost of living payment for pensioners
More than eight million pensioner households across the UK will receive an additional £300 cost of living payment in 2023-24.
This is in addition to the means-tested benefit and disability payments, if eligible, which could give them a total income boost of £1,350.
The Uk Government said: “Pensioners are disproportionately impacted by higher energy costs, many are unable to increase their income through work, and many low-income pensioner households do not claim the means tested benefits they are entitled to, so offering universal support for this group is the right thing to do.”
DWP will provide further detail on timing of the payments and eligibility dates in due course.
This payment will be tax-free and will not have any impact on existing benefit awards. These payments will be made on a UK-wide basis.
New £150 disability cost of living payments
Over six million people across the UK on non-means-tested disability benefits will receive a further £150 disability cost of living payment in 2023-24.
This is in addition to the cost of living payments for households on means tested benefits and pensioner households, if eligible.
This includes everyone eligible for:
- Disability Living Allowance
- Personal Independence Payment
- Adult Disability Payment
- Child Disability Payment
- Attendance Allowance
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
DWP will provide further detail on timing of the payments and eligibility dates in due course.
This payment will be tax-free and will not have any impact on existing benefit awards.
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