Millions of people who claim means-tested benefits are set to get a one-off £650 payment from the government - but many claimants will get nothing.
Yesterday Chancellor Rishi Sunak revealed that cash will be handed out to 8.4million households on benefits.
But it all depends what sort of benefits you get.
If your benefits are assessed based on your income, you are eligible for a one-off payment of £650 regardless of how much benefit you get.
But if your benefits are not means-tested you are not eligible for the £650 cost of living payment.
The list of benefits where claimants won't get £650 are:
- Attendance Allowance
- Carer's Allowance
- Child Benefit
- Disability Living Allowance (DLA)
- 'New style' Employment and Support Allowance
- Guardian's Allowance
- 'New style' Jobseeker's Allowance
- Maternity Allowance
- Personal Independence Payment (PIP)
- State pension
- Statutory sick pay
- Statutory adoption, maternity, paternity and shared parental pay
If you get Housing Benefit , but no other benefit, you are also not eligible for the £650.
This sounds surprising, because Housing Benefit is means-tested.
But if you only get Housing Benefit then HM Revenue & Customs cannot find you to pay you the money.
Instead, the Chancellor has advised people in this position to apply to the Household Support Fund - a pot of emergency cash handed out by local councils to people in need.
Sunak added an extra £500million into this pot yesterday.
The list of benefits eligible for the £650 are:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
However, just because you miss out on the £650 does not mean you will get no government money at all.
For example, anyone getting DLA or PIP will be eligible for a different payment - a £150 one-off sum for people on disability benefits.
People getting the state pension may be eligible for a further £300 payment - provided they qualify for Winter Fuel Payment.
The Household Support Fund is also open to hard-up households who need help with the cost of living.
The Chancellor's changes comes as energy bills for the average home are due to rocket by £800 to £2,800 a year from this October.
Millions of people will receive a £400 discount off their energy bill as part of the Chancellor's new cost of living support .
The Chancellor confirmed this will replace the hugely unpopular £200 “loan-not-a-loan” scheme, which would’ve needed to be paid back.
This original £200 has now been turned into a grant - meaning struggling households will no longer need to repay it.
Sunak has also increased the amount you’ll get off your bill by an extra £200, taking the total discount to £400.
