Tag: cost of living crisis

New report finds high utility, food and broadband costs are squeezing older people’s budgets across Scotland

High costs across the board, from utilities and food to accessing the internet, are causing misery for thousands of older people across Scotland, warns national charity Independent Age.

Laid bare in their new report – The Hidden Two Million – is the profound impact high costs are having on those in later life living on the lowest income across the UK. In Scotland, over half (56%) of those polled on a low income (less than £15,000 per year) say they are worried about the cost of electricity. When asked about heating, still over half (54%) were concerned about the utility’s affordability.

Food inflation has been at record highs the past year, and this has also had a harmful impact on those on the lower end of the income spectrum. Polling by Independent Age shows that a staggeringly high 45% of older people living on £15,000 per year or less are cutting back on their food spending and well over a third (42%) of the same group are concerned about covering their food bills for the next 6 months.

Across the UK, 20% of single pensioners, and 7% of couple pensioners have no other source of income outside the State Pension and other benefits. Older people in financial hardship have shared with Independent Age that managing on a fixed income means, when faced with increased bills, the only options they feel they have to choose from, are to cut back – which could harm physical and mental health – or go into debt.

It’s not just big bills that are squeezing older people’s finances. Smaller but important bills, such as phone and broadband, are also causing money worries.

New polling commissioned by Independent Age shows that 39% of older people with an income of less than £15,000 per year, are already cutting back on their phone usage to save money while 35% of the same group are fearful of not being able to afford their broadband bill during the next 6 months.

This is concerning as not being digitally connected can lead to social isolation and limits access to better deals only found online.

Recommendations

Independent Age is urging both the government and private sector to do the following in support of older people in financial hardship:

  • Utility companies must provide and promote financial support to everyone on low incomes, including older people
  • The UK Government should introduce national social tariffs across utilities such as energy
  • The UK and Scottish Governments must ensure that everyone in financial hardship in later life receives the financial support they are entitled to

June, 67, Glasgow, is currently struggling financially. She said: “Now I know exactly what’s getting paid with my pension, I know what’s coming in.

“I’m very cautious with money. I’m careful to make sure I’ve got enough to get me my food. You’ve got to be careful because you can still run out at the end of the month, not got any money, know what I mean, then you end up going to the food bank.

“If something big was to come up that was needed, say my fridge, God forbid, or my cooker or washing machine, it would be a worry. I would have to get help. I can’t go out and buy big things.

“I cannot go for a cup of tea or buy a wee meal for my friends, it’s irritating because you want to do more. But I’m restricted, I’ve not got the finance for that. So you just forget it. I live a quiet life.”

Debbie Horne, Scotland Public and Policy Affairs Manager at Independent Age said: “These new figures are a stark reminder of just how frightening turbulent economic times can be for those on the lowest incomes.

“Thousands of people in later life across Scotland are being financially squeezed in every direction, this can be damaging to people’s mental and physical health.

“We hope that all utility companies will review their support for their most vulnerable customers, including older people, and ensure they are protected from future spikes in costs.

The hidden two million. The reality of financial hardship in later life

Independent Age launched its powerful report at an event last week to raise awareness of its renewed focus to support the more than 2 million older people across the UK living in financial hardship (including the 150,000 in poverty in Scotland), and those hovering above the line in a financially precarious situation.

The new research provides the latest insights into poverty in later life.

The event also saw the premier of the charity’s new thought provoking film that amplifies the voices of older people currently living in financial hardship.

Here is the link to the film:

https://www.youtube.com/watch?v=Roq07aRNZi4&ab_channel=IndependentAge

IACP026_launch_report_embargoedDownload

Embarrassment stops Scots from seeking financial help

  • Nearly 4 in 10 say they wouldn’t ask for financial help if they were in trouble due to embarrassment
  • 81% say they feel anxious about their financial situation
  • 44% say they feel more worried about their financial situation now, compared to a year ago

New research has revealed that those in Scotland are the most at risk of financial turmoil due to embarrassment about their financial situation.

The findings, which were part of a UK-wide study by financial comparison website, NerdWallet UK, found that those in Scotland – alongside those in the South West – are the most likely to not seek help should they find themselves in financial difficulty due to the embarrassment around the topic.

Almost two-fifths of those surveyed said that embarrassment would stop them from seeking help, while just under one-third would be concerned about the impact doing so would have on their credit history, as well as worries around confidentiality. The same number also believe they can manage on their own and do not need external help.

Other reasons which would stop Scots from getting help include, the cost of getting financial advice (29%), and worryingly, just over a quarter said they were not aware of any organisations to help them with debt, or how to contact them.

If I was struggling financially, the following would stop me from asking for help – Scotland:

ReasonPercentage who agreed
I would feel embarrassed37%
I’m worried about the impact on my credit history31%
I’m worried about confidentiality31%
I think I can manage on my own31%
I don’t want to pay for advice29%
I don’t think my financial situation is serious enough28%
I’m not aware of the debt help organisations or how to contact them26%
I don’t want to speak about my problems on the phone23%

This is despite 81% of Scots saying they feel anxious about their financial situation, and 25% saying these feelings are daily occurrences.

Furthermore, 44% of respondents in Scotland say they feel more worried about their financial situation now, than they did a year ago.

When asked who they would go to or help first, almost half (48%) said they would speak to their partner or close family member, while 12% said they would speak to a friend.

Adam French, senior editor at NerdWallet UK, said, “It’s worrying that so many Scots would not get help due to embarrassment. Struggling financially is never something to be embarrassed about, and if the cost of living crisis has taught us anything over the last 18 months, it’s that financial trouble can happen to any of us, at any time.

“Getting help when you first find yourself in financial difficulty, and not burying your head in the sand can help to relieve a lot of stress and anxiety around money, and find a way out before things get worse.

“There are plenty of independent experts and companies available to speak to, for free, including Granton Information Centre, the Citizen’s Advice Bureau and Step Change. Everything is confidential, and discussing concerns will not impact your credit score.”

For information on NerdWallet, and to view the full dataset, visit: 

https://www.nerdwallet.com/uk/personal-finance/money-and-mental-health-study/

Boyack: Redeem unclaimed energy vouchers before it’s too late

Following concerns raised by the advocacy group Energy Action Scotland over the number of households with pre-payment meters who have not claimed their voucher entitlement from the UK Energy Bill Support Scheme that ended in March 2023, Scottish Labour MSP Sarah Boyack is urging people in Edinburgh to redeem their vouchers before they expire on 30th June 2023.

In Edinburgh, 34 per cent of vouchers have yet to be claimed, with the approximate value of the unclaimed support in Edinburgh being at  around £1,374,120.

Households with non-smart (traditional) prepayment meter need to actively redeem the vouchers that have been sent by post, text or email.

Once the voucher from the energy supplier is received,  people will need to take it to a Post Office or PayPoint shop to add it to the gas or electricity top-up key or card.

Commenting Sarah Boyack MSP said: “If you live in a household with older, non-digital pre-payment meters, you have been issued with vouchers by post, text or email to support you with the rising energy costs.

“These vouchers are valid for 90 days and expired or lost vouchers can be re-issued through the energy supplier.

“However, all vouchers expire on 30th June when the scheme ends.

“If you are entitled to energy vouchers, now is time to redeem them. They may not resolve the cost of living crisis, but during these hard time, we need all support we can get.”

Scottish Government: ‘Cash-first’ approach to tackling food insecurity

New plan will strengthen access to cash in a crisis

A commitment to a ‘cash-first’ approach to tackling food insecurity is at the heart of a new plan to reduce the need for people to turn to food banks.

The plan, which is the first of its kind in the UK and is underpinned by human rights, sets out nine actions which will be taken over the next three years to improve responses to food insecurity.

Actions include establishing a new £1.8 million Cash-First Programme to help reduce the demand for emergency food parcels by improving urgent access to cash in crisis and associated support.

The Scottish Government will work with councils, the third sector and community food initiatives to help prevent future need by integrating money advice and wider support into crisis responses.

Social Justice Secretary Shirley-Anne Somerville said: “Whilst none of us want food banks, we recognise the important role they play for people in need. This plan, the first of its kind by any UK Government, will support people who face food insecurity and will move us closer to our longer-term ambition of a country where there is no need for food banks.

“We want to ensure we reach people in need and by providing a cash-first approach, backed by advice and support, we will support people to strengthen their incomes and prevent future hardship and crisis, allowing them more choice and dignity.

“Tackling poverty and protecting people from harm is one of the Scottish Government’s three critical missions. The Trussell Trust suggests that our Scottish Child Payment may have helped to slow the pace of demand for emergency food parcels last year.

“Without the full economic and fiscal powers of an independent nation we can’t eradicate poverty, but we are taking all the action we can to support people within our limited powers and fixed budget.”

The plan also includes up to £623,000 funding for the British Red Cross to continue a Scottish Crisis Fund, which provides people at risk of destitution – including survivors of domestic abuse, and those no recourse to public funds – with emergency grants to purchase the food and other essentials.

Phil Arnold, Head of Refugee Support for Scotland, Wales and Northern Ireland, British Red Cross said: “The Scottish Crisis Fund is a lifeline emergency payment for people in crisis.

“The fund enables people to continue accessing essential food, clothing, hygiene products and transport to get to key appointments, at an acute period of distress in their lives.

“The increased cost of living, widening dispersal of people seeking asylum to areas without specialist support, and reduced rights for people seeking protection in the UK, all underline the importance of a joined-up, properly resourced safety net which this fund plays an important role in providing.”

Polly Jones, head of Scotland for the Trussell Trust said: “We welcome this first plan to end the need for food banks from any government in the UK, and it comes at a time when the use of food banks is at an all-time high. Ending the need for charitable food aid requires significant leadership and urgency from all levels of government.

“The Trussell Trust is committed to working with the Scottish Government to support it to do what charities cannot and deliver bold long-term action to increase people’s income and ensure everyone can afford the essentials.”

Sabine Goodwin, Coordinator of the Independent Food Aid Network, said: “The Scottish Government has powers to reduce food insecurity and adopt a truly cash-first, income-focused strategy to end the need for charitable food aid in Scotland.

“As the poverty crisis deepens, frontline teams across Scotland are eager to see a time when no one needs to turn to any form of charitable food aid provision to get by. We welcome this plan and the Scottish Government’s commitment to critical steps towards that cash-first future.”

Cash-First: Towards ending the need for food banks in Scotland

cash-first-towards-ending-need-food-banks-scotlandDownload

Plans to extend protections for tenants

Emergency measures to protect tenants during the cost of living crisis, including the private rent cap and additional eviction protections, will be extended for a further six months if approved by Parliament.

Tenants’ Rights Minister Patrick Harvie has confirmed proposals to keep the Cost of Living (Tenant Protection) Act measures in place until 31 March 2024 at the latest. This would mean:

  • Most in-tenancy private rent increases would continue to be capped at 3%
  • Alternatively, private landlords could apply for increases of up to 6% to help cover certain increases in costs in a specified time period where these costs can be evidenced
  • Enforcement of evictions would continue to be paused for six months for most tenants, except in a number of specified circumstances
  • Increased damages for unlawful evictions of up to 36 months’ worth of rent would continue to be applicable

Social rented sector tenants are protected by the voluntary agreement reached with social landlords on below-inflation rent increases for this financial year.

Mr Harvie said: “As the cost of living crisis continues, these measures are giving important support to tenants, providing them with much-needed stability in their housing costs and additional eviction protections.

“As the social housing sector have agreed their rents in consultation with their tenants, the focus of this temporary legislation is on providing private renters with similar protection. We know some landlords are impacted by rising costs too.

“The option of increasing rents by 6% in specified circumstances ensures landlords who may be impacted by the cost of living crisis can recover some increased costs associated with their let property.

“The final date of 31 March 2024 would be as long as the rent cap and eviction protections could run if approved by Parliament. The necessity of these measures is being kept under review and we will continue to assess whether they remain justified, balanced and proportionate based on the financial pressures rented households and landlords are facing.

“We are also looking at how to transition out of the emergency measures, and we continue to listen to and work hard with stakeholders to develop and deliver rental sector reform.”

303,000 children are receiving £25 weekly Scottish Child Payment

The Scottish Child Payment is now being received by the families of more than 300,000 children and young people, according to official statistics.

New figures published yesterday show that 303,000 children were receiving the payment at the end of March.

The total amount of the benefit paid out since its February 2021 launch now stands at £248.6 million.

Scottish Child Payment was extended to include all eligible children until their 16th birthday and increased to £25 per child per week in November last year.

First Minister Humza Yousaf, who yesterday visited Castlebrae High School to hear how the Scottish Child Payment is making a difference to families, said: “The game-changing Scottish Child Payment is designed to tackle child poverty head-on and lift families out of poverty.

“Families in Scotland are able to benefit from five family payments delivered by the  Scottish Government which could be worth more than £10,000 by the time an eligible child turns six and over £20,000 by the time an eligible child turns 16.

“I am pleased at the take up of the Payment but we still want to get that money to all of those eligible. I would encourage anyone who thinks they may be eligible to find out more and apply.”

Tackling poverty and protecting people from harm is one of three critical missions for the Scottish Government and it will continue to tackle child poverty via its second child poverty delivery plan for 2022-26, Best Start Bright Futures.

Earlier this month the First Minister convened a cross-party anti-poverty summit to listen to the views of people with lived experience of poverty, the third sector, academics, campaigners and other interested parties.

The First Minister added: “The Scottish Child Payment is one of an ambitious range of actions to support families immediately and in the long term.”

Polly Jones, Head of Scotland at the Trussell Trust, said: “Everyone in Scotland should be able to afford the essentials but we know that more families are struggling than ever before.

“We have long called for the Scottish Child Payment to be increased and extended to all children up to 16 and so it’s very encouraging to see the positive impact this is making, reaching more families and getting more cash into the pockets of people who need support the most.”

Lidl is cheapest supermarket in UK

  • ​​​​​​Lidl has officially been named the cheapest supermarket in the UK, beating all major retailers, and undercutting Aldi, in latest price comparison survey
  • The analysis, conducted by The Grocer, found a basket of everyday items at Lidl cost just £50.27, making it cheaper than competitors even with their discount schemes applied
  • Lidl’s everyday grocery items clocked in more than 10% cheaper than Tesco, and a whopping £19.91 cheaper than the most expensive retailer, Waitrose

Lidl has once again been named cheapest supermarket in The Grocer’s ‘Super Grocer 33’, beating all major supermarkets, including Aldi.

The price index, which compares the price of 33 everyday grocery items across the UK’s seven major supermarkets, found Lidl to be £19.91 cheaper than Waitrose, the most expensive retailer. This win comes as Lidl’s fourth accolade, out of five surveys since the Grocer 33’s inception.

The survey also found Lidl came out cheapest even after other supermarkets’ discount schemes were applied. Overall, the discounter was found to be ten per cent (£6.17) cheaper than Tesco – and still £5.13 after Clubcard discounts were applied. Similarly, the same products at Sainsburys cost £6.80 more, with no benefit from the supermarket’s Nectar Prices.

The accolade also comes despite traditional supermarkets recently announcing an array of price drops, demonstrating that the discounter still offers better value.

The Grocer compares prices of items on shopping lists across the nation as part of the monthly analysis – from fresh produce, such as milk and grapes, to deodorant, and branded items including Hovis Bread and Kellogg’s Corn Flakes. 

Lidl offered the cheapest price on 26 products – and exclusively the lowest price for five products across a range of categories, including:

  • Baby corn at £2.79 (76p cheaper than the most expensive and 4p cheaper than the next cheapest)
  • Kellogg’s Corn Flakes at £2.05 (25p cheaper than the most expensive and 20p cheaper than the next cheapest)
  • Domestos bleach at £1.39 (21p cheaper than the most expensive and 10p cheaper than the next cheapest retailer)
  • Prawns at £1.99 (£1.76 cheaper than the most expensive and 20p cheaper than the next cheapest)
  • Custard creams at 54p (26p cheaper than the most expensive and 1p cheaper than the next cheapest)

It’s not just the Super Grocer 33 basket proving this – for the past fourteen weeks Lidl has also been cheapest in a weekly price comparison conducted by the Manchester Evening News on essential groceries.

Ryan McDonnell, Chief Executive Officer at Lidl GB, said: “Every week, independent analysis shows we are consistently the UK’s cheapest supermarket. As a result, we are seeing more customers coming through our doors and switching their weekly shop to Lidl from the traditional supermarkets.

“We know people switch to us make savings, but then stay with us when they realise that they’re not having to compromise on quality.”

SupermarketRatio Price SummaryPrice compared to Lidl
Lidl£50.27– 
Aldi£50.46+19p
Asda£54.42+£4.15
Tesco£56.44+£6.17
Sainsbury’s£57.07+£7.30
Morrisons£60.05+£9.78
Waitrose£70.18+£19.91

Tough decisions: Scottish Government publishes financial strategy

Plan to grow economy, target spending and deliver progressive tax system

Economic growth, progressive taxation and spending plans that unapologetically target those in greatest need are at the heart of a financial strategy announced by Deputy First Minister Shona Robison.

The Medium-Term Financial Strategy outlines the approach to ensuring Scotland’s finances are on a sustainable footing and delivering high-quality public services in the face of high inflation. This includes:

  • growing the economy, including by delivering on ambitious commitments on childcare, seizing opportunities in areas where Scotland has a competitive advantage and supporting entrepreneurs, start-ups and scale-ups
  • taking tough decisions around spending, focusing on what is needed to achieve the missions of equality, opportunity and community
  • updating the tax strategy, with a new advisory group to be established this summer and chaired by the Deputy First Minister

The strategy details the tough choices required in challenging financial circumstances. Scottish Government estimates indicate that due to inflation, pay increases and the lack of further funding from the UK Government, current resource spending requirements could exceed funding by £1 billion in the next financial year, and by £1.9 billion in 2027-28.

The gap between capital spending commitments and funding could rise to 16% in 2025-26.

Ms Robison said: “We are steadfast in our commitment to tackling poverty, building a fair, green and growing economy, and improving our public services to make them fit for the needs of future generations.

“But we must recognise that our current financial situation is among the most challenging since devolution, driven by the Covid pandemic, the war in Ukraine and the recent period of high inflation.

“Our funding remains largely based on decisions made by the UK Government, but they have failed to take the steps required to inflation-proof our budgets, and their decisions from Brexit to the disastrous mini-budget have made matters worse. This is creating substantial pressure on our public services, which we have no choice but to address.

“Today I have outlined our strategy for managing these challenges, doing all we can within our powers to ensure public finances are on a sustainable path. We will have a laser-like focus on spending, ensuring it targets equality, opportunity and community.

“We will generate economic growth, supporting businesses to invest and create new jobs while increasing tax revenues to invest in better public services. And we will continue to build the most progressive tax system in the UK, ensuring the burden of taxation is placed on those with the broadest shoulders.

“There can be no escaping the difficult choices ahead, but by following the plan outlined today we can provide a more prosperous and fairer future for the people of Scotland.”

Responding to the statement, STUC General Secretary Roz Foyer said: “The Cabinet Secretary for Finance is in a slightly better budgetary position than was predicted this time last year. However, she rightly points out that UK Government austerity and its manufactured cost-of-living crisis continue to hit Scotland hard.

“However, this is not an excuse for inaction. There is a worrying lack of ambition from the government ministers which cannot be condoned.

“Tax reform cannot be kicked down the road for another year. To protect services and pay, the Scottish Government must make good on the First Minister’s pledge to leave no stone unturned in seeking to raise additional income by rebalancing wealth. This means committing now to the policy changes required to introduce wealth and property taxes as the STUC has advocated.”

The Deputy First Minister’s statement to the Scottish Parliament

Help for Households? Chancellor to meet with food manufacturers

  • The Chancellor will meet with food manufacturers on Tuesday to discuss the cost of food and explore ways to ease pressure on households
  • He is also due to meet the Competition and Markets Authority about their investigations into the fuel and grocery markets
  • Government will look at reforms around unit pricing, to make it easier for consumers to compare the prices for similar products

The Chancellor will meet with food manufacturers today (Tuesday 23 May) to raise concerns about the high price of food in the UK and discuss measures the government can take with industry to ease the pressure on households.

Building on engagement between the Chief Secretary to the Treasury and the UK’s biggest supermarkets earlier this month, the Chancellor will ask food manufacturers to do what they can to support consumers.

As crucial players in the supply chain to supermarkets, this follow up meeting with food manufacturers will help ministers better understand the challenges firms are grappling with as inflated prices continue to plague the economy. The food and drink manufacturing sector is the largest in the UK, accounting for nearly 20% of total UK manufacturing and employing almost half a million people across the country.

On the same day, the Chancellor will meet with the independent Competitions and Markets Authority (CMA) to discuss the scope of their investigations into road fuel and groceries markets, including the possible action they could take if they are dissatisfied with the level of competition in the sector which could be allowing higher prices to prevail.

The government wants it to be easier for consumers to compare the prices of products, and the CMA is currently reviewing the use of unit pricing both in-store and online in the groceries sector. The government will consider updating pricing rules, including by strengthening the Price Marking Order 2004 (Retained EU Law), after the CMA review has concluded.

While rising food prices in the UK are in line with the EU average and headline inflation fell by 0.3 per cent last month, food inflation grew to 19.2 per cent. Food inflation disproportionately affects low-income households, who spend more of their income on food and are less able to swap what they would usually buy for cheaper alternatives.

Chancellor of the Exchequer, Jeremy Hunt, said: “High food prices are proving stubborn so we need to understand what’s driving that.

“That’s why I’m asking industry to work with us as we halve inflation, to help ease the pressure on household budgets.”

Chief Executive of the Food and Drink Federation, Karen Betts said: “We are looking forward to discussing the multiple drivers of food price inflation with the Chancellor, which have caused the fastest acceleration of food prices in a generation.

“Despite manufacturers’ best efforts in recent months to absorb rising costs in their margins, these have been both persistent and broad-based – from ingredients to energy and labour – making price rises unavoidable.

“We believe food and drink price inflation is close to its peak, and food and drink manufacturers will continue to work hard to keep prices as low as possible, conscious of the pressure on hard-pressed households.

“Government can help too, for example by urgently reviewing upcoming packaging recycling regulations to make them more efficient, by working with us to address labour and skills shortages, and by keeping to a minimum the labelling changes required of companies as a result of the recent agreement with the EU on the movement of food and drink to Northern Ireland.”

The government says it has acted decisively to help struggling households with rising prices, pledging to halve inflation this year and taking action to bring down bills for families. This includes introducing the Energy Profits Levy on oil and gas companies to pay almost half of a typical household’s energy bills, freezing fuel duty and taking difficult decisions on government spending to make sure we do not fuel inflation further.

One of the most generous support packages in Europe has also been rolled out, worth £3,300 per household on average over this year and last. Benefits and state pensions have been increased by over 10 per cent, up to £1,350 in direct cash payments are being made to millions of vulnerable households and record uplifts in the National Living Wage mean someone who is currently out of work and takes a full-time job will be over £7,500 better off.

Extra support has been put in place to help the most vulnerable with high food prices, including the £2.5 billion Household Support Fund which provides local authorities with money to support their communities with the cost of essentials, the £200 million Holiday Activities and Food Programme which supports children on Free School Meals with a nutritious meal during the holidays and an expansion of Free School Meals to all 5-7 year-olds.

The Prime Minister and Farming Secretary brought together representatives from across the UK food supply chain last week, where they outlined a range of measures to help strengthen the long-term resilience and sustainability of the sector and put farmers at the heart of plans to grow the economy.

Payment window for £150 Disability Cost of Living Payment announced

  • Vast majority of £150 payments set to be made automatically over two-week period between 20 June and 4 July 2023
  • More than six million disabled people will receive payment and benefit from extra cost of living support
  • Comes as part of wider package of Government support, including separate means-tested Cost of Living Payments totalling up to £900, and £300 Pensioner Payments

More than six million disabled people in the UK will receive their one-off £150 Disability Cost of Living Payment from 20 June.

This follows the £150 Disability Cost of Living Payment that was paid last September, demonstrating the Government’s commitment to supporting the most vulnerable in society while delivering on its commitment to halve inflation this year and grow the economy.

Those being paid a disability benefit that qualifies them for the payment will receive it automatically during a two-week window starting on 20 June and finishing on 4 July.

At a time when costs are rising for everyone, this payment recognises the extra costs disabled people in particular often face, such as care and mobility needs.

A small proportion of payments will be made after this date, where claimants were still awaiting confirmation of their eligibility or entitlement to disability benefits on 1 April.

There will also be further payments of £300 for pensioners due later this year, meaning some of the most vulnerable households can receive up to £1,350 in direct Cost of Living Payments.

Secretary of State for Work and Pensions, Mel Stride MP, said: “This payment helps protect those who need our support the most, providing a vital financial boost to six million disabled people.

“Our multi-billion-pound package of support reinforces our commitment to help UK households with the rising cost of living. It comes on top of record increases to benefits and the national living wage.”

Minister for Disabled People, Health and Work, Tom Pursglove MP, said: “We know the cost of living has gone up for disabled people, which is why we are taking action to reduce the financial pressures they face.

“This £150 Disability Cost of Living Payment is on top of up to £900 that most low-income benefit claimants will also receive, helping ensure the most vulnerable in our society are protected from rising costs during this challenging period.”

The full list of benefit recipients that qualify for the upcoming Disability Cost of Living payment are those who receive:

  • Disability Living Allowance
  • Personal Independence Payment
  • Attendance Allowance
  • Scottish Disability Benefits (Adult Disability Payment and Child Disability Payment)
  • Armed Forces Independence Payment
  • Constant Attendance Allowance
  • War Pension Mobility Supplement
  • They must have received a payment (or later receive a payment) of one of these qualifying benefits for 1 April 2023 to get the payment. For those who were awaiting confirmation of their entitlement to disability benefits on 1 April, or who are waiting to be assessed for eligibility to receive disability benefits, the process may take longer, but payments will still be automatic.
  • Disabled people on low incomes in receipt of means-tested benefits may previously have been eligible for £301 this spring, and stand to be eligible for a further £300 this autumn and £299 in spring 2024. The £150 payment will be made on top of these Cost of Living Payments, with disabled people who wouldn’t qualify for the means-tested support, but who are in receipt of disability support, also receiving the payment.
  • You can read more about the Government’s cost of living support on the Help with the cost of living page.