The cost of living payment offered by the Government aims to help lower-income families who are struggling to pay their bills amid rising costs.
To help the lowest income families in the UK, the Government has been delivering cost of living payments in addition to other benefits.
Approximately eight million households are set to receive a £900 payment, made in three instalments for those eligible.
The first £301 will be paid between April 25 and May 17.
The second payment of £300 will be made in the autumn, and the final £299 will be paid in the spring next year.
The £900 is in addition to the £400 energy grant (paid in instalments between October 2022 and March 2023) and a previous £650 cost of living payment that most households will have already received (£326 paid in July 2022 and £324 paid in November 2022).
Am I eligible for a cost of living payment?
The cost of living payments are exempt from tax and do not count towards the benefit cap.
Only those who have been receiving means-tested benefits during the qualifying period at the beginning of the year can get the cash payment worth £900.
This includes anyone on:
- Universal Credit
- Tax credits
- Pension credit
- Income-based jobseekers allowance
- Income-related employment and support allowance
- Income support
- Working tax credit
- Child tax credit
HMRC urges households to ensure their financial information is correct and up to date when renewing their tax credits.
Low-income pensioners are also encouraged to check their eligibility. Eligible pensioners can still qualify for and receive the first £301 cost of living payment if they apply before May 19.
It should be noted that Britons should receive these payments automatically so they should not apply.
Britons are urged to remain vigilant so they do not fall victim to a cost of living payment scam.
Lucinda O’Brien, personal finance expert at money.co.uk explained the cost of living crisis in the UK has been an ongoing struggle for many households.
She said: “Rising inflation, council tax rises, and increasing interest rates (which can add hundreds to mortgage costs) are taking their toll on the British public.
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“The cost of living crisis has been particularly challenging for low-income families. Households already receiving benefits may have to choose between paying for their essentials, such as food and energy, and putting money aside for their futures.
“Housing, energy, and food prices have all increased, and to combat rising inflation, interest rates have spiked, meaning mortgage payments have also risen dramatically. People are struggling to cover their essentials and as a result, it is increasingly difficult to save effectively.”
The most recent of these is this year’s £900 cost of living payment and the first instalment of £301 has started to be paid into people’s bank accounts as of April 25, 2023.
Those eligible will get the money paid in automatically in the same way they usually get benefit payments or tax credits.
They may be eligible for the following payments:
- £900 cost of living payment
- £300 pensioner household payment
- £150 additional disability benefit payment
If someone thinks they are eligible for any cost of living payment but have not yet received it, they will need to report this to the Department for Work and Pensions (DWP).
Ms O’Brien continued: “To save money during the cost of living crisis, you need to take stock of your current finances and understand your spending habits, essential outgoings, and income. Set a realistic budget and be as detailed as possible about where you have money coming in and out.
“Once you have these details, it will be much easier to spot where you can make savings by cutting non-essential spending.
“To make sure you are accessing all the financial support you are entitled to, you can check your eligibility using the government’s online benefits calculators.
“If you feel you have missed a payment you are eligible for, you can report this to the Department for Work and Pensions and make sure you have your national insurance number to hand.”
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