Low income households to get new Cost of Living Payments from Spring 2023 but claims of a 10% cut

Millions of the lowest-income households across the UK will get up to £1,350 from the UK government in 2023/4 to help with the cost of living.

The extra help was first announced by chancellor Jeremy Hunt in November’s Autumn Statement.

However a fuel poverty action group has said the support represents a 10% cut.

The Department for Work and Pensions said most of the support would be made up of a £900 cost of living payment for more than eight million households paid in three instalments over the course of about 12 months from spring 2023.

More than six million individuals on disability benefit will also receive a separate payment of £150 this summer, while an estimated eight million pensioners will be given an extra £300 next winter.

Exact payment windows will be announced closer to the time, but are spread across a longer period to ensure a consistent support offering throughout the year. They will be broadly as follows:

• £301 – First Cost of Living Payment – during Spring 2023
• £150 – Disability Payment – during Summer 2023
• £300 – Second Cost of Living Payment – during Autumn 2023
• £300 – Pensioner Payment – during Winter 2023/4
• £299 – Third Cost of Living Payment – during Spring 2024

Work and Pensions Secretary, Mel Stride said:

“We are sticking by our promise to protect the most vulnerable and these payments, worth hundreds of pounds, will provide vital support next year for those on the lowest incomes.”

“The government’s wider support package has already helped more than eight million families as we continue to deal with the global consequences of Putin’s illegal war and the aftershocks of the pandemic.”

Chancellor of the Exchequer, Jeremy Hunt added:

“I know these are tough times for families across the UK who are struggling to meet rising food and energy costs, driven by the aftershocks of Covid and Putin’s war in Ukraine.”

“That’s why we’re putting a further £900 into the pockets of over 8 million low income households next year. ”

“These payments are on top of above inflation increases to working-age benefits and the Energy Price Guarantee, which is insulating millions from even higher global gas prices.”

“Tackling inflation is this government’s number one priority and is the only way to ease the strain of high prices, drive long term economic growth and improve living standards for everyone.”

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