The Government is continuing much of its cost of living support from last year, including payments for those on DWP benefits, elderly people and those with disabilities. However, many are still wondering when exactly they should expect these payments in their bank account with someone eligible for all three sums to get £1,350 within the space of a year.
Means-tested benefit payment
Those in receipt of certain benefits from the Department for Work and Pensions will be entitled to a £900 sum later this year, which is an increase from the similar £650 delivered in 2022.
Means-tested support takes into account income and qualifying DWP payments include the following:
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Universal Credit
- Working Tax Credit
- Child Tax Credit
- Pension Credit.
This £900 cost of living payment will be administered by claimants in three separate instalments throughout the year, with £301 to be paid during spring.
Another £300 for people on qualifying means-tested DWP benefits will be handed out during autumn 2023, with the remaining £299.
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Disability payment
People with a disability will also be entitled to a £150 cost of living payment this year to help with soaring financial costs.
Last year, a similar amount was handed out to this demographic as part of the Government’s wealth of support.
To get this cost of living payment, claimants must be on one of the following disability benefits from the DWP:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment (PIP)
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
- Armed Forces Independence Payment
- War Pension Mobility Supplement.
This particular cost of living payment for those on these disability benefits will be handed out in the summer of 2023.
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Pensioner payment
All older people in the UK will qualify for the Government’s £300 cost of living payment for pensioners, which is the same amount awarded last year.
Unlike the previously mentioned payments, pensioners will not need to be in receipt of a qualifying benefit from the DWP.
As well as this, the triple lock pledge on state pension payments is returning in April which means older people will be awarded a 10.1 percent payment rate hike.
This percentage increase is also being applied to other pensioner benefits from the DWP, including Pension Credit.
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Despite this support, experts are warning that the wait for getting paid means vulnerable households may still struggle with the cost of living crisis.
Laura Suter, head of personal finance at AJ Bell, highlighted why she is particularly concerned with the rollout.
She explained: “Millions of people now know when they will get crucial government support to help with the cost of living this year, with the first payments coming in Spring.
“But the Government isn’t delivering exactly what it promised, making millions of families wait longer for their payments.”
The finance expert urged those in need to start an emergency fund to “bolster your income” amid the ongoing financial pressures.
Ms Suter added: “All these factors together mean that households are going to have to find more money to pay for their bills this year.
“Inflation is expected to stop its rapid rise upwards in the coming months, but that doesn’t mean prices are going to fall – they will just stop rising so quickly – meaning higher prices are here to stay.
“The new year is a good time to sort through your finances and get them as ship-shape as possible – whether that’s moving expensive debt to a cheaper deal, starting an emergency savings pot or working out a way to bolster your income, all these moves will help to start 2023 on the right foot.”
