MILLIONS of households will get a £900 cost of living payment next year – check to see if you are eligible now.
Speaking in his Autumn Statement on Thursday, Hunt raised taxes and squeezed spending in an attempt to get the UK economy back on track.
While many of us will be contributing more, even amid a cost of living crisis, Hunt confirmed extra support to those struggling the most.
In particular, the Chancellor told the House of Commons that over eight million struggling households will be paid a £900 support payment.
As we move into winter, many Brits are feeling the chill but are reluctant to put the heating on because of an increase in energy costs.
This payment will be a nice boost as many of us are having to cut costs elsewhere to simply make ends meet.
Speaking yesterday, Hunt said: “For the most vulnerable we will introduce additional cost of living payments next year, of £900 to households on means-tested benefits; £300 to pensioner households; and £150 for individuals on disability benefit.
“We will also provide an additional £1billion of funding to enable a further twelve month extension to the Household Support Fund, helping Local Authorities to assist those who might otherwise fall through the cracks.”
Details remain scant but below’s what we know so far.
A note on the government’s website said the Department for Work and Pensions (DWP) and HMRC will provide further detail on the timing of these payments, as well as eligibility dates in due course.
He also announced:
- Up to £1,350 in cost of living payments
- Pension triple lock to stay in £870 boost for seniors
- Benefits including Universal Credit and pension credit to rise with inflation
- New work coach requirements for Universal Credit
- Social housing rents to rise 7%
- Freeze on income tax and National Insurance thresholds
- Stamp duty cut to end in 2025
- Typical energy bills to be capped at £3,000
- Minimum wage to rise to £10.42 an hour
What is the £900 cost of living payment?
The £900 cost of living payment is a support payment paid to households in the UK that are struggling the most.
The payment is part of a £26billion package announced by the government to help people during the cost of living crisis.
This payment will be tax-free and will not have any effect on any existing benefit payments that you receive.
Am I eligible for the £900 payment?
The £900 payment will be going to millions on means-tested benefits – you’ll only be able to get it if you are claiming one of these benefits below.
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Tax Credits (Child Tax Credit and Working Tax Credit)
- Housing Benefit
- Council Tax Support
- Social Fund (Sure Start Maternity Grant, Funeral Payment, Cold Weather Payment)
- Universal 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.
When will the £900 be paid?
We don’t know the exact dates that the £900 payment will be paid, but the government website said the support is for 2023/24.
It’ll be paid in multiple instalments, so you’ll get it over a series of payments rather than all at once.
For example, this is similar to the £400 energy bill support payment that is being paid in instalments of £66 over a six-month period.
So, it’s most likely going to be similar to that.
How will I be paid?
We still don’t have all the information on how eligible people will be paid but like with other support payments, it’ll most likely be paid automatically into your bank account.
It’s usually the same account that you have any benefits paid into – so make sure it’s all up to date.
The website also said that the DWP and HMRC will provide further detail on the timing of these payments, as well as eligibility dates in due course.
You may need to ensure you’re receiving the correct benefits in order to receive the handouts.
Hunt also announced further support payments for pensioners and struggling households – including £300 and £150 packages.
Who is eligible for the £300 payment?
The current Pensioner Cost of Living payment is being given to all pensioners who normally get the Winter Fuel Payment.
This means you qualify if:
- you were born on or before September 25, 1956
- you lived in the UK for at least one day during the week of 19 to 25 September 2022 in what is known as the “qualifying week”
Jeremy Hunt has now confirmed millions of elderly Brits will receive another one-off £300 payment next April.
Again, you qualify if you were born on or before September 25, 1956, but it’s not yet known whether households will qualify if they normally receive the Winter Fuel Payment.
Who is eligible for the £150 payment?
People with disabilities who qualified for the current £150 one-off payment needed to receive one of the following:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
Mr Hunt confirmed a second £150 payment will be made next year, but the criteria for receiving it is not yet known.
What else was announced?
The Chancellor offset the handouts with sweeping spending cuts and tax rises to try and fill the £60billion black hole in the nation’s finances.
However, he froze tax thresholds until 2028, which will drag more workers into higher tax bands.
Inflation hit 11.1% in October, meaning people’s pockets are being stretched.