The UK Government has announced a new series of cost of living payments to help millions of households manage their financial struggles in 2023.
The new support package, worth £26 billion, is in addition to a benefits uprating of £11 billion, reports the Daily Record. This news means that Scottish households will be supported by these additional payments, as long as they qualify.
The payments are £900 for people on low-income benefits, £300 for pensioner households and £150 for those on disability benefits. So, if you qualify for all three, you would receive a total of £1,350.
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The qualifying disability benefits include the devolved Adult and Child Disability Payments in Scotland. Details about qualifying periods and payment dates are yet to be announced, but the guidance available suggests that eligible benefits for each cost of living payment will remain the same as those made this year.
This included eight million on low-income benefits, six million on disability benefits and eight million pensioner households. Read on below to find out about each individual payment.
New £900 cost of living payments for households on means-tested benefits
More than eight million households across the UK is set to receive an additional cost of living payment in 2023/24. This will be a payment of £900.
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 will also issue further details on when these payments will come through, and other eligibility details. 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
Over eight million pensioner households across the UK will receive an extra £300 cost of living payment in 2023. This is also in addition to a means-tested benefit and disability payment, and now 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.”
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DWP will provide further detail on timing of the payments and eligibility dates for this payment in due course.
This payment will be tax-free and will not have any impact on existing benefit awards.
New £150 disability cost of living payments
And finally, over six million people across the UK who are on non-means-tested disability benefits will receive an extra £150 cost of living payment specific to their needs.
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
This payment will be tax-free and will not have any impact on existing benefit awards.
More information is available on the GOV.UK website.
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