cost of living crisis – Page 14 – The NEN

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.

Cost of living crisis: Help is available for those who need it, says FCA

The Financial Conduct Authority (FCA) has reminded borrowers they can get help from their lenders if they are struggling to keep up with payments, as it found the number of people struggling to meet bills and credit repayments has risen by 3.1m since May 2022 (10.9m, compared to 7.8m in May 2022).

The number of adults who missed bills or loan payments in at least three of the last six months has also gone up by 1.4 million, from 4.2 million to 5.6 million over the same period.

The FCA has repeatedly reminded firms of the importance of supporting their customers and working with them to solve problems with payment, including by writing to industry bosses to make sure they are aware of the regulator’s expectations.

Where firms haven’t supported their customers properly, the FCA has told them to make changes. It reminded 3,500 lenders of how they should be supporting borrowers in financial difficulty and told 32 lenders to make changes to the way they treat customers. This work has led to £29 million in compensation being secured for over 80,000 customers.

As part of its Financial Lives survey, the FCA found that the cost of living is having an impact on people’s mental wellbeing. Around half of UK adults, or 28.4 million people, in January 2023 felt more anxious or stressed due to the rising cost of living than six months earlier.

Sheldon Mills, Executive Director of Consumers and Competition said: ‘Our research highlights the real impact the rising cost of living is having on people’s ability to keep up with their bills, although we are pleased to see that people have been accessing help and advice.

‘If you’re concerned about your finances, you do not need to worry alone. We’ve told lenders that they should provide support tailored to your needs. And, if you find yourself in debt or want to know more about how to manage your finances, free expert advice is available.

‘We will continue to act quickly to make sure financial firms help their customers who are facing financial difficulty or are worried they might be soon.’

The support needed to deal with the rising cost of living goes beyond what is provided by the financial services sector. As a result, the FCA continues to work with other regulators and debt organisations to drive better coordination and help make sure customers are treated fairly and supported if they get into financial difficulty.

The FCA will also be introducing the Consumer Duty in the summer. The Duty will be the driving force behind its consumer protection work, as it will require firms to act to deliver good outcomes for consumers and make sure that they are properly supported while using a financial product or service.

Research: Financial Lives January 2023: Consumer experience of the rising cost of living – the burden of bills and ways to get support

ARE YOU STRUGGLING TO COPE WITH DEBT?

Local advice is available at Granton Information Centre. Telephone 0131 551 2459, 0131 552 0458 or email appointments@gic.org.uk

We’re help to help!

Pensioners: Don’t miss out on Cost of Living Payment

Don’t miss out on the £301 Cost of Living Payment as a recipient of Pension Credit – submit your application for Pension Credit before FRIDAY – 19 May.

Did you know, if you get Pension Credit you could also get a help with your council tax, housing costs, broadband fees and energy bills?

You could be on average £3,500 a year better off.

To check your eligibility and to apply, visit: http://ow.ly/KfW350Oh0na

#HelpForHouseholds

More help for more families: Income thresholds to be removed for Best Start Foods

An estimated 20,000 additional people will become eligible for additional help to buy healthy foods when income thresholds are removed for Best Start Foods payments.

The Scottish Government benefit provides help to pregnant women or their partners as well as families with children aged up to three years old, so they can buy healthy food, milk or baby formula.

It is currently paid to people who receive qualifying benefits, so long as their incomes are not above set thresholds. The Scottish Government will introduce regulations that remove those thresholds increasing eligibility for Best Start Foods to around an additional 20,000 people from February 2024.

Social Justice Secretary Shirley-Anne Somerville said: “Tackling poverty and protecting people from harm is one of the Scottish Government’s three critical missions.

“Rising food prices disproportionately hurt those on the lowest incomes, so removing the threshold for qualifying benefits means around 20,000 people will now get vital help to buy healthy foods.

“Best Start Foods is one of our five family payments, including the Scottish Child Payment, which together could be worth more than £10,000 by the time a first child turns six and more than £20,000 by the time an eligible child is 16.

“As set out in our tackling child poverty plan, we will use all the resources available to provide immediate support to families, while seeking more powers to enable us to truly tackle poverty.”

Mental health matters – owning pets ‘a lifeline’ for many during the cost of living crisis, says PDSA

Ahead of Mental Health Awareness Week (15 – 21 May), a leading vet charity is advocating keeping pets and their owners together through the cost of living crisis.

Nearly all pet owners (94%) say that owning a pet makes them happy, according to new figures from the upcoming 2023 PDSA Animal Wellbeing (PAW) Report – and their support has been vital, especially as many people have been forced to make drastic cutbacks to stay afloat.

While worrying figures have shown that as many as 770,000 owners are going without necessities in order to keep caring for their pets, almost half of owners (44%) have also said that their four-legged friend has been a lifeline during the cost of living crisis.

Nearly all (90%) pet owners felt having a pet improved their lives, a comfort which is especially important as many feel the impact of the cost of living crisis. This figure is higher especially among dog (91%) and cat owners (89%).

The findings also highlight the benefits of having a pet on overall health, with 87% stating owning a pet makes them mentally healthier. While over two thirds (67%) feel it makes them physically healthier – a figure that is even higher among dog owners (86%).

Meanwhile, at a time where many people are having to juggle energy bills and soaring living costs, which can prove isolating, furry friends are essential when it comes to providing companionship. For example, the figures show that over four in five pet owners (85%) say that owning a pet makes them feel less lonely.

PDSA Veterinary Surgeon, Lynne James, said: “Pets are family, and we know that pet owners will go to great lengths to ensure they can continue to care for their beloved pets. It vitally important that with everything pets do for us, we make sure that they have everything they need to live healthy and happy lives.

“Our latest figures show pets are invaluable, especially when their owners are going through hardship. As the cost of living crisis worsens, the work of charities like ours becomes vital, not only to provide essential veterinary care, but also to keep pets and their owners together in their time of need.

“In 2022, we provided veterinary care for over 390,000 pets, whose owners would otherwise have struggled to afford the cost and may even have had to resort to other options such as rehoming – the mental health consequences of which are unimaginable.

“As Mental Health Awareness Week approaches, I’d like to encourage pet owners who are struggling due to rising costs, and who are concerned about being able to afford the cost of veterinary treatment to reach out to us. Our website includes a free eligibility checker to find out whether they’re able to access our services, which is a great place to start.

“We also have lots of free advice on how to reduce the cost of caring for pets, while ensuring they remain healthy and happy – something we hope will take a mental load off for many pet owners through the cost of living crisis.”

PDSA relies on donations to deliver life-saving treatment to hundreds of thousands of pets across its 48 Pet Hospitals in the UK.

To help keep pets and people together, the charity is urgently calling on the public’s support to prevent vulnerable people having to make a truly heart-breaking decision.

To find out more about PDSA’s vital work during the cost of loving crisis, or to donate, visit www.pdsa.org.uk/costoflovingcrisis.

Life’s a beach: Make the move to Edinburgh and the Lothians this summer with Barratt Developments

Homebuyers who’ve always dreamt of living by the sea can reserve now and move in in time for summer, with a range of new properties available near the coast in Edinburgh and the Lothians.

Barratt Developments – which includes Barratt Homes and David Wilson Homes – is encouraging first time buyers and downsizers to take advantage of the homebuilder’s cost-saving initiatives and find their new ideal home, located a stone’s throw away from a number of coastal walks and beaches.

An array of two and three-bed properties at Cammo Meadows in Edinburgh, The Strand in Portobello and St Clements Brae in Wallyford, East Lothian are now ready to be moved into ahead of the warm weather, with each development less than a ten-minute drive from golden sands.

Ideally located close to the City Bypass, the properties are perfect for first time buyers looking for work-life balance or those downsizing to quieter surroundings. According to Moneybox, the Edinburgh area is also the fifth most popular hotspot for first-time buyers.

Interior showhome photography of The Ashworth at David Wilson Homes Cammo Meadows development in Edinburgh

To make the move seamless, Barratt Developments, which includes Barratt Homes and David Wilson Homes, is currently offering buyers £1,000 for every £20,000 spent, plus flooring included. This cash from the initiative can be used towards a deposit, mortgage repayments or moving costs. A number of selected homes also include upgraded options.

In addition to a high-quality finish, buyers can expect their home to be energy efficient. According to Barratt Developments’ Tackling the Cost of Living Crisis – 2023 Report, more than 55% of Scots are considering buying a new build home to save on energy bills.

The recent ‘Watt a Save’ report from the Home Buyers’ Federation (HBF) showed that around 84% of new builds have an energy efficiency rating of A or B, compared to just 4% of existing housing in the UK. Thanks to advanced systems and technologies, all Barratt homes are now up to 63% more energy efficient, which could save homeowners up to £3,100 per year on bills.

Anne Ross, sales director at Barratt Homes and David Wilson Homes East Scotland, said: “Location is key when we build our homes, so we’re proud to be able to offer a selection of ‘ready-to-move-into’ properties in some of the most popular areas in Edinburgh and the Lothians.

“These homes are perfect for first time buyers or downsizers looking to mix the hubbub of the capital with suburban living.

“If people reserve now, they can be moved in in time for summer and the process is made even easier with our current incentives – which include mortgage repayments and flooring, in addition to improved energy efficiency. Homebuyers are urged to move quickly, as we expect these homes to be snapped up fast.”

Barratt Homes and David Wilson Homes in the North and West of Scotland also have limited availability on homes ready to move into before summer.

For more information on available homes or on Barratt Developments in Scotland, visit https://www.barratthomes.co.uk/new-homes/scotland-east/

Poverty Summit: Prioritising those most in need

Tax, targeted support and tough budget choices will all need to be considered as part of bold measures to tackle poverty, First Minister Humza Yousaf said yesterday after meeting poverty campaigners.

The anti-poverty summit, convened by the First Minister, saw political leaders from across the Scottish Parliament meet with people who have direct experience of poverty, campaigners, and third sector organisations.

Speaking after the event, which was attended by around 90 delegates, the First Minister said: “I called the summit to listen to the views of a wide range of partners, particularly those at the sharp end of the cost of living crisis and with direct experience of poverty, about what they believe needs to be done.

“Everything I heard confirmed that poverty and the cost of living crisis is the biggest challenge facing this country – one that has been exacerbated by some of the UK Government’s actions and inactions.

“We have already acted to tackle the pressure on those most in need – for example, our game-changing £25 per week per child Scottish Child Payment, Carer’s Allowance Supplement, and Winter Heating Payment.

“But we must do more. We must be bold in considering future tax decisions. Tough choices will need to be made about existing budgets, and we need to consider whether targeting help is the way forward when money is so tight.

“It’s not enough to wish poverty away. We have to be hard-headed and realistic about what can be done – and then we have to focus on making it happen. That means the debate must now be about tax, targeting and tough choices. We are listening and will not shy away from the decisions needed to reduce poverty.”

COSLA President Councillor Shona Morrison said: “The initiative from the Scottish Government is a good one and one which Local Government can get fully behind. Tackling poverty is a core objective for Local Government working in partnership with the Scottish Government, the third sector and public and private sector partners.

“The cost- of-living crisis we are living through at present is being tackled head-on by Councils the length and breadth of Scotland and partnership working is vital to achieving positive outcomes for individuals, families and our communities across Scotland.”

Commenting on reports around the expansion of universal free school meals in Scotland, Poverty Alliance director Peter Kelly said: “The First Minister has to recognise the injustice that leaves so many children in Scotland hungry and without food they need.

“With figures from the Trussell Trust showing record numbers of families accessing food banks, this is not the time to roll back on commitments relating to free school meals.

“We know that many low-income families just miss out on qualifying for means-tested free school meals, and many others don’t claim because of shame or stigma.

“The best way to tackle this problem is through universal free school meals that benefit all of our children and young people.”

Peter Kelly was speaking just after attending yesterday’s anti-poverty summit, chaired by the First Minister.

He said: “The First Minister’s poverty summit was a timely opportunity to refocus on tackling the injustice of poverty in Scotland. Across all those who took part, there was a clear sense of urgency on the need to deliver real change.

“There was no shortage of ideas for action. We can expand funded childcare, use public contracts as a lever to improve pay and conditions in key sectors, and remove barriers to work for those people most affected by poverty – women, disabled people, people from Black and ethnic minority communities.

“Now is the time for the Scottish Government to turn those ideas into concrete action. We look forward to a follow up summit in the coming year to check where progress has been made.”

Positive anti-poverty summit soured by possible roll-back on Free School Meals

THE sCOTTISH Trades Union Congress (STUC) and the STUC Women’s Committee have warned of massive resistance to any reversal on the SNP free school meals pledge and called for an acceleration, not a roll-back of the programme.

STUC General Secretary Roz Foyer said: “We were enthusiastic participants in the summit today. Our key message is that better and fairer wages tied to redistributive taxation must lie at the heart of strategies to tackling poverty and inequality. Current levels of in-work poverty are totally unacceptable and place further pressure on our under-funded benefits system. We need to see real action coming out of this summit.

“Suggestions this morning that the Scottish Government might consider breaking pledges to extend free school meals is not what we are looking to hear. Investing in the health of all of our young people and removing stigma is a key priority and any roll-back will be fiercely resisted.”

Andrea Bradley, Chair of the STUC Women’s Committee and General Secretary of the Educational Institute of Scotland said: “The STUC Women’s Committee would be deeply concerned if the First Minster’s comments around a potential reversal of the Scottish Government’s progressive policy on universal free school meals expansion as reported today, were to be put into action.

“1 in 4 children in Scotland were living in poverty before the onset of the cost-of-living crisis, which the previous First Minister declared a humanitarian emergency. Now, food inflation of 20%, together with exorbitant energy costs, and stagnant wages is making life even harder and more miserable for hundreds of thousands of parents in Scotland and their children – many already missing out on a decent meal at school because of the stigma or the bureaucracy of means-testing.

“Now is the time to accelerate the roll-out of universal free school meals – not to roll back on what were essential promises.”

Over 7 million households receive £301 Cost of Living Payment from DWP in just 8 days

99% of households initially eligible through DWP will have been directly paid £301 by the government by end of today (3 May 2023)

The payments are the first of 3 new Cost of Living Payments worth up to £900 in 2023/24 for those eligible – though some people will receive up to £1,350.
Those remaining will continue to be paid between now and 17 May by DWP, with no need to contact anyone.

More than 7 million households across the UK will have been paid a £301 Cost of Living Payment by the end of today (3 May 2023).

This means the vast majority of eligible households have received the support in just 8 days of the rollout starting, with the small number of payments outstanding to be made by 17 May.

The payment is the first of 3 Cost of Living Payments being made this year and the next, illustrating the government’s commitment to supporting vulnerable families with financial pressures. This comes alongside work to deliver on the government’s 5 priorities, including halving inflation and growing the economy, which will ultimately help put more money in people’s bank accounts at the end of the month.

Mel Stride, Secretary of State for Work and Pensions, said: “Paying more than 7 million households £301 in a little over a week underlines our commitment to ensure those on the lowest income are protected from the worst of rising prices and give them peace of mind.

“With further payments due to be made later this year and in 2024, we will continue to provide support to those who need it most while we tackle inflation and grow the economy.”

Jeremy Hunt, Chancellor of the Exchequer, added: “We know the impact that rising prices are having on families, which is why we are providing significant support to millions through these direct cash payments. This is alongside other support, including holding down energy bills, uplifting benefits and the State Pension by 10%, and increasing the National Living Wage by a record amount.

“The single best way to ease cost of living pressures is to bear down on inflation. We are on track to halve it this year, laying the foundation for the long-term growth needed to improve everyone’s living standards.”

The Cost of Living Payments, spread across 2023/24, are worth up to £900 for those on means-tested benefits. The next payment for those on means-tested benefits is due in the autumn, with the third instalment due next spring.

These are accompanied by a £150 payment for people on eligible disability benefits this summer, and a £300 payment to top up Winter Fuel Payments for pensioners at the end of 2023 – meaning some will receive up to £1,350.

This makes up part of the government’s significant cost of living support – now worth an average of £3,300 per household over this year and last.

People will be eligible for the £301 Cost of Living Payment if they have been entitled to a payment for one of 7 benefits between 26 January and 25 February 2023. The eligible benefits are:

Universal Credit
Pension Credit
Income-based Jobseekers Allowance
Income-related Employment and Support Allowance
Income Support
Working Tax Credit
Child Tax Credit

The DWP encourages anyone who thinks they may be eligible for a qualifying benefit to use a benefits calculator to check their entitlement. In particular, low-income pensioners should check their eligibility for Pension Credit, as they may still be able to receive the £301 Cost of Living Payment, and subsequent payments, if they make a successful backdated application by 19 May 2023.

The small number of payments outstanding will continue to be made between now and 17 May, and anyone eligible still waiting for a payment does not need to contact the Department for Work and Pensions (DWP) before then.

After this date, if someone thinks they may be missing a payment they are entitled to, a form can be filled out on the GOV.UK website to make a claim.

One million eligible families, receiving tax credits only, will get their £301 Cost of Living Payment from HM Revenue and Customs (HMRC) between Tuesday 2 and Tuesday 9 May with the banking reference ‘HMRC COLS’.

This payment comes on top of extensive support given to low-income households in 2022, including up to £1,100 in Cost of Living Payments. The Household Support Fund, worth over £2 billion across its lifetime, continues to offer support to people across England, and those in need should contact their local council to see what support is available in their area.