Millions of low-income households to get new Cost of Living Payments from spring 2023

The Department for Work and Pensions (DWP) announced more detail on the payment schedule for the next round of cost-of-living support unveiled in the Chancellor’s autumn statement, building on payments made to over 8 million people in 2022.

The new £900 cash boost for over 8 million eligible means-tested benefits claimants, including those on Universal Credit, Pension Credit and tax credits, starts in spring and will go directly to bank accounts in three payments over the course of the financial year. There will also be a separate £150 for over 6 million disabled people and £300 for over 8 million pensioners on top of their Winter Fuel Payments.

Exact payment windows will be announced closer to the time but are spread across a longer period to ensure a consistent support offering throughout the year. They will be broadly as follows:

• £301 — First Cost of Living Payment — during spring 2023
• £150 — Disability Payment — during summer 2023
• £300 — Second Cost of Living Payment — during utumn 2023
• £300 — Pensioner Payment — during winter 2023/4
• £299 — Third Cost of Living Payment — during spring 2024

If individuals are eligible they will be paid automatically and there will be no need to apply. Claimants who are eligible for any of the Cost of Living Payments and receive tax credits and no other means-tested benefits will receive payment from HMRC shortly after DWP payments are issued.

These payments build on the government’s support package to help households tackle the globally rising cost of living stemming from the pandemic and the war in Ukraine.

The government’s Energy Price Guarantee continues to cap energy costs, saving the average household around £900 this winter and a further £500 in 2023/24. Benefits, including working-age benefits and the State Pension, will also rise in line with inflation from April 2023, ensuring they increase by over 10 per cent. April will also see the biggest-ever cash rise to the National Living Wage, bringing it to £10.42 an hour and a further year-long extension of the Household Support Fund in England and associated devolved nation funding worth £1 billion in total.

This comes on top of the 2022 support package, which included:

• A £650 Cost of Living payment for means-tested benefit claimants, split into two payments, each of which supported over 8 million households
• Further £300 and £150 payments, which reached over 8 million pensioners and over 6 million disabled people, respectively
• A £150 Council Tax rebate for all households in Council Tax bands A–D
• A £400 energy bill discount for all households, which will continue to run through March