Millions of people are in line to receive a huge cost of living payment next year to help them pay their bills. The new payment worth a total of £900 was announced by chancellor Jeremy Hunt during the UK government's autumn statement last Thursday and will be paid to those on means-tested benefits.
The money will be given in more than one instalment and follows the government handing out £650 worth of financial support to those on benefits this year in a bid to help them through the cost crisis. The first payment worth £326 landed in bank accounts in July and the second instalment worth £324 was rolled out earlier this month. All eligible claimants are expected to get their money by the end of the month.
The government has not yet revealed when next year's payments will land in people's accounts but MoneySavingExpert founder Martin Lewis has revealed when he expects the payments to be given in 2023. The Mirror reports that Mr Lewis has posted a video online where he predicted it would happen next autumn.
Read more: Jeremy Hunt's autumn statement key points: What it means for you
He said: "As for exactly when they'll be paid, I don't know yet. My guess – and it's only a guess – is they will be put in place in time for next winter. So those payments will come some time probably around October/September and the cost of living payment will probably come in two tranches as it did this year."
Tweeting after Mr Hunt made his autumn statement Mr Lewis said: "I am very pleased that both benefits and the state pension are being increased by the 10.1% September inflation rate. It only happens from next April, and it will still be hard for many, but if it was less than this it would've been devastating."
Who will be eligible for the £900 cost of living payment?
Claimants of the following benefits will be eligible for the government’s £900 cost of living support:
- Income-based jobseeker's allowance
- Income-related employment and support allowance
- Income support
- Universal credit
- Working tax credit
- Child tax credit
For the previous payments you had to be entitled or later found to be entitled to one of these benefits by a certain date. The DWP hasn't confirmed when the payments will be sent but it has confirmed it will be issued in instalments again.
There are a number of other cost of living payments being rolled out in the coming months with experts predicting the UK's longest recession on record and inflation topping 10%. Millions of pensioners are set to receive a winter fuel payment of up to £600 to help with soaring energy costs. You can read more about that here. You can read all about the cost of living payments due between now and Christmas, and who is eligible, here. To get all the latest money-saving news straight to your inbox twice a week sign up here.
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