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If you’re having trouble understanding the cost of living payments you’re not alone.
The government have made numerous announcements, backtracked on some and haven’t made it entirely clear who gets what.
With millions of households expected to struggle financially here in the UK, it’s important that you understand what you are eligible for.
And once you know what you should get, it’s important that you ensure that you actually get it!
Here, we have answered some of the frequently asked questions around the cost of living payments and broken down exactly what each one means.
Table of Contents
Understanding the Cost of Living Payments – FAQs
How is the Cost of Living Payment Paid?
If you receive benefits, any payments you are entitled to should happen automatically. They will be paid in the same way you usually get your benefits or tax credits.
However, they are some exceptions to this so if you haven’t received something you were expecting it’s important that you look into the criteria of specific payments.
Do You Have to Pay Back the Cost of Living Payment?
No. The payments will not have to be paid back and your entitlement to these payments will not affect any other benefits you are in receipt of or entitled to.
However, if it is later found out that you claimed something and you were not entitled to it, then it will have to be paid back.
Does Everyone Get a Cost of Living Payment?
Many households will benefit from something offered in the cost of living support package – however, there are exceptions and it is better to look at the criteria of the individual payments offered to see exactly what you are entitled to than making the assumption.
What if I Haven’t Been Paid a Cost of Living Payment I Was Expecting?
If you think you should’ve been paid one of these cost of living payments but you can’t see the amount entering your bank account, you can report a missing payment.
Understanding the Cost of Living Payments – A Breakdown
source:gov.uk
Energy Bills Support Scheme – £400
Who is entitled to it?
The Energy Bills Support Scheme is a £400 discount offered to eligible households.
The scheme applies to all households with a domestic electricity connection in England, Scotland and Wales.
Northern Ireland households will receive £400 through a similar scheme.
The 1% of estimated households who are not eligible for the scheme, will be able to get equivalent support.
How do you get it?
The discount will be automatically applied in monthly instalments starting in October 2022 for 6 months.
(£66 in October 2022 and November 2022. £67 in December 2022, January 2023, February 2023 and March 2023)
You do not have to do anything – your supplier will automatically deduct it from your bill.
If you’re on a prepayment meter you will get vouchers which you need to redeem.
If you haven’t had your first discount by the end of October 2022, you should contact your energy supplier directly.
Cost of Living Payment – £650
Who is entitled to it?
Households on means-tested benefits will receive £650.
This includes households who receive any of the following:
- Child Tax Credit
- Income-related Employment and Support Allowance
- Income-based Jobseekers Allowance
- Income Support
- Pension Credit
- Universal Credit
- Working Tax Credit
How do you get it?
You will receive the payment in 2 instalments.
The first instalment of £326 began rolling out in July 2022.
The second payment of £324 will be rolled out in November 2022.
The payments happen automatically and is paid in the same way that your benefits are.
Pensioner Cost of Living Payment – £300
Who is entitled to it?
Anyone over State Pension age (aged 66 or above) between 19 – 25 September 2022 who is already entitled to the Winter Fuel Payment will get an additional £300.
This is because Pensioners are disproportionately affected by higher energy costs.
How do you get it?
You’ll get it as a top up to your usual Winter Fuel Payment by Direct Debit. It should happen automatically.
Disability Cost of Living Payment – £150
Who is entitled to it?
Anyone in receipt of the following benefits will get an additional £150 payment:
- Attendance Allowance
- Armed Forces Independence Payment
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- War Pension Mobility Supplement
How do you get it?
You’ll be paid it automatically from 20 September 2022.
Wales Fuel Support Scheme – £200
Who is entitled to it?
Eligible households in Wales can also claim a one-off £200 cash payment from their local council.
It is being offered to provide support in paying energy bills and is available to eligible households in addition to all other cost of living payments.
How do you get it?
To get the payment, the applicant or their partner must have been in receipt of a qualifying benefit between 1 September 2022 and 31 January 2023.
Applications are made through local councils, for more information visit the gov.wales page.
Council Tax Rebate – £150
The council tax rebate was a scheme that provided a payment of £150 to eligible households living in council tax bands A to D.
It was delivered by local councils from 1 April to 30 September 2022.
Summary
Though there is some financial help out there, it is limited.
Many households who do not claim benefits will also struggle this Winter and will not be entitled to additional help.
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