Quick Guide to the Government’s Cost of Living Payments

Following the COVID crisis and the resulting economic downturn, the Government responded by announcing a number of Cost of Living Payments to alleviate the public’s financial hardship.  The media has reported significantly about these payments, but there still seems to be some confusion as to who is entitled to these payments, how much they will receive and when payment will be made. 

The Cost of Living Payments will be paid to eight million homes within England, Wales, Scotland and Northern Ireland.

The payments are as follows:

Low Income Households

Low income households (those receiving payments from the Department of Work & Pensions) will receive the first instalment of £326, automatically into their bank accounts between 14 July and the end of July.  They will then receive a second instalment of £324 in autumn 2022 (the exact date is still to be announc

Eligibility for these payments is determined by those receiving one of the following benefits (or having started a successful claim) by 25 May 2022:

• Universal Credit
• Income Based JSA
• Income Related ESA
• Income Support
• Working Tax Credit
• Child Tax Credit
• Pension Credit

Additional Payments

Pensioners (those over State Pension age by 19 September 2022) are to receive a payment of £300 sometime in November 2022.

Disabled people (those receiving Attendance Allowance, DLA, PIP, and War Pension etc.) will receive a payment of £150 sometime after September 2022.

All households are to receive an additional £400 as a contribution towards higher energy bills.  This will be credited to the energy account from October 2022.

Properties which are within Council Tax Band A-D will receive £150.  This started in April 2022 and will be paid automatically into the bank account if the Council Tax is paid by direct debit. If payment is made otherwise, the householder will need to apply. 

These payments are stand-alone payments and, depending on circumstances, people may be eligible for more than one payment.

To summarise:

	14-31 July 2022	From April 2022	After September 2022	Autumn 2022	From October 2022	November 2022
Universal Credit	£326			£324
Income related JSA	£326			£324
Income related ESA	£326			£324
Income Support	£326			£324
Working Tax Credit	£326			£324
Child Tax Credit	£326			£324
Pension Credit	£326			£324
Households within council tax band A-D		£150
Disabled People			£150
All households					£400
Pensioners						£300