What To Know About the Next Cost of Living Payment
Those eligible for the Cost of Living government support will receive the second half of the payment in autumn, but while the Department for Work and Pensions (DWP) had been silent on when the exact date would be, they’ve recently revealed it will come between 8th and 23rd November. The payments will be paid automatically into people’s bank accounts.
The first half was paid to those claiming Universal Credit, Pension Credit or other means-tested benefits in July, while the second payment is due in November. It’s part of a wider £37 billion support package to help those in the most financial stress after the rising cost in energy.
Other one-off grants were paid to households, including the £150 to those on certain disability benefits. Plenty of people are worried after there have been delays in payment due to what the DWP called “operational issues”. As such, some people will be paid the £150 this month.
Pensioners who qualify for the Winter Fuel Payment will receive a further £300 to help cover higher winter heating costs. This is on top of any Cost of Living benefit.
While the Energy Price Guarantee started on October 1st, the £400 energy discount also began. £66 will be applied to household energy bills for the next two months, followed by four payments of £67 from December to March. The £400 amount is spread over the next six months in order to provide support for bigger heating bills throughout the winter.
Those on prepayment meters will be given vouchers to use for credit in the first week of each month. These may be sent via text, email or post with customers’ own contact details.
The Energy Price Guarantee, also known as the £2,500 cap, limits the amount you can be charged per unit of gas and electricity by energy providers. It’s not a cap on how much you can be charged in a year, contrary to what the Prime Minister was saying on the radio last week. If you use more energy, you’ll be charged more, and if you use less, you’ll be charged less.
While some people didn’t initially qualify for a payment, some cases have been appealed and they will receive payments as soon as possible. An outline of the Cost of Living payments announced has been included below.
Despite the Energy Price Guarantee and the £400 energy discount, some are wondering if further support should be available. Given the government’s recent announcements at the mini-budget that crashed the value of the pound and will be making the wealthy even more well-off, it’s becoming more likely that more might need to be done to help.
The Energy Price Guarantee will run for the next two years, which will give some financial security, but this is still at higher levels than previously experienced. Given Liz Truss’ reluctance to offer new handouts and her aversion to windfall tax, it doesn’t look good in terms of further support.