Over 8 million families in the UK to receive new Cost of Living Payment this spring

Families in the UK on means-tested benefits will automatically receive £301 this spring and over 6.5 million people on disability benefits in the country will receive a £150 payment this summer.

The £301 payment is the first of five direct Cost of Living Payments for the most vulnerable households including pensioners and disabled people, with the total amount of support reaching up to £1,350.

Work and Pensions Secretary, Mel Stride, said these direct payments will help people right across the UK over this year and the start of the next.

Chancellor of the Exchequer, Jeremy Hunt, added these payments are the next part of the significant support the government is providing with millions of vulnerable households receiving £900 directly into their bank accounts this financial year alongside additional help for pensioners and those with disabilities.

“This latest payment will provide some temporary relief, but the best thing we can do to help families and businesses is to stick to the plan to halve inflation this year,” he said.

Exact payment windows and qualifying periods for eligibility will be announced in due course but are designed to ensure a consistent support offer throughout the year. Payment windows will be broadly as follows:

£301 – First 2023/24 Cost of Living Payment – during spring 2023

£150 – 2023 Disability Payment – during summer 2023

£300 – Second 2023/24 Cost of Living Payment – during autumn 2023

£300 – 2023 Pensioner Payment – during winter 2023/4

£299 – Third 2023/24 Cost of Living Payment – during spring 2024

There are several benefits that could make claimants eligible for the £301 Cost of Living Payment, including Universal Credit and tax credits through which 5.4 million households across the UK are expected to qualify and Pension Credit through which 1.4 million pensioner households are expected to be paid. A total of 1.3 million will be eligible through legacy DWP benefits such as Jobseeker’s Allowance and Income Support, reaching a total of 8.1 million households.

Eligible individuals do not need to apply for payments, as they are made automatically. Those eligible for Cost of Living Payments through tax credits and no other means-tested benefits will be paid by HMRC shortly after DWP payments are made.