Payments of up to £600 are landing directly in the bank accounts of around 11.5 million UK pensioners for the second year running
Comes as part of extensive Government package helping people of all ages, including recent £300 Cost of Living payments to more than seven million eligible households.
After meeting our pledge to halve inflation, the UK Government this week also confirmed an 8.5 percent increase to the State Pension next year.
Pensioners across the country have started to receive up to £600 to help with energy bills this winter.
Winter Fuel Payments – boosted again this year by an additional £300 per household Pensioner Cost of Living payment – will land in bank accounts over the next two months, the vast majority automatically.
Work and Pensions Secretary Mel Stride said: “We have delivered on our promise to halve inflation and will continue to support people right across the country, including pensioners who may be facing particular challenges over the colder months.
“As well as up to £600 to help our pensioners stay warm this winter, we’re boosting pensions through the Triple Lock – increasing the full rate of the New State Pension by over £900 next year.”
The money will appear in bank statements with the payment reference starting with the customer’s National Insurance number followed by ‘DWP WFP’ for people in Great Britain, or ‘DFC WFP’ for people in Northern Ireland.
The overwhelming majority of Winter Fuel Payments are paid automatically but some people need to make a claim, such as those who qualify but do not receive benefits or the State Pension and have never previously received a Winter Fuel Payment. The payments deliver additional support to pensioners, the majority of whom are on fixed incomes and also are unable to raise their incomes through fixed employment.
The start of the Winter Fuel Payments season comes hot on the heels of the recent £300 Cost of Living payments made by the DWP to more than seven million eligible households across the UK.
This latest payment is the second of up to three Cost of Living Payments being made this financial year. These payments – which are all tax-free and will not have any impact on existing benefit awards – demonstrate the Government’s commitment to supporting low-income families with financial pressures.
Pensioners getting Pension Credit also qualify for this extra support. The average Pension Credit award is now worth £3,900 per year and there is still time for those who are eligible to apply and receive the £300 Cost of Living payment.
This is because an eligible claim for Pension Credit can be backdated by three months provided the entitlement conditions are met throughout that time.
Including measures announced in the Autumn Statement this week, our total commitment to ease cost of living pressures has risen to £104 billion. That includes paying around half the cost of the average energy bill since last October and amounts to an average of £3,700 per household.
This is first of three new Cost of Living payments adding up to £900 in 2023/24 – though some people will receive up to £1,350
Over 8 million households to receive £301 from the Government with payments hitting bank accounts from today
Those eligible will be paid between Tuesday 25 April and Wednesday 17 May, with HMRC making payments to tax credit-only customers between Tuesday 2 and Tuesday 9 May
Over eight million households across the UK will receive a £301 Cost of Living Payment from the Government, with payments rolled out from today, demonstrating the Government’s relentless focus on our five priorities – including halving inflation, growing the economy and reducing debt.
As the cost of living continues to affect families across the UK, these payments are designed to target support towards the most vulnerable in society and provide them with a financial boost.
The Department for Work and Pensions (DWP) will send payments automatically and directly to recipients’ bank accounts, with a reference of their National Insurance number followed by ‘DWP COL’.
This is the first of up to three payments for those eligible on means-tested benefits, including Universal Credit, Pension Credit and tax credits, totalling £900 through 2023/24. These will be accompanied by a £150 payment for people on eligible disability benefits this summer, and a £300 payment on top of Winter Fuel Payments for pensioners at the end of 2023.
This builds on the significant cost of living support already provided to eligible households throughout 2022 – now worth an average of £3,300 per household over this year and last.
Those entitled do not need to do apply for the payment or do anything to receive it. Payments made during this window will be staggered over the next couple of weeks meaning not everyone entitled to receive a payment will receive it today.
Mel Stride, Secretary of State for Work and Pensions, said: “This latest additional payment will be welcomed by millions of families – as will further payments due over the next year.
“We have continually supported those most vulnerable to rising costs, including through record benefits and national living wage increases as well as these exceptional Cost of Living Payments responding to the global pressures we are facing.
“We will also continue to deliver on our five priorities, including halving inflation, as this will ease pressure on households currently struggling with household bills and rising prices.”
Jeremy Hunt, Chancellor of the Exchequer, added: “The best thing we can do to help people’s money go further is deliver on our priorities to halve inflation and grow the economy.
“But we’re also here to help people through these tough times, which is why we’re holding down energy bills, freezing fuel duty, increasing Universal Credit, and giving £900 payments to low income and vulnerable families – all in part funded through windfall taxes on energy profits.”
People will be eligible for the Cost of Living Payment if they have been entitled to a payment for one of seven 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.
Once the majority of those who are entitled to a payment by DWP have been paid, HM Revenue and Customs (HMRC) will make payments of £301 between Tuesday 2 and Tuesday 9 May to one million eligible families receiving tax credits only, with the banking reference ‘HMRC COLS’.
The latest payment follows on from the £650 Cost of Living Payment delivered by the Government in 2022, along with another £150 disability payment and a £300 pensioner payment.
While payments are made automatically, people must be receiving one of the eligible qualifying benefits during the specified period to qualify. Those who wish to check their entitlement to benefits should use a benefits calculator on Gov.uk to get a better idea of what they could receive.
Low-income pensioners particularly 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.
Those in need are also encouraged to contact their local council to see if any additional support is available in their local area, such as through the DWP’s Household Support Fund in England, worth over £2 billion across its lifetime.
Further Information
These payments will all be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
The three means-tested Cost of Living Payments, worth up to £900 in total, will be delivered in three slightly different amounts, each relating to a specific qualifying period before the payment is made. This allows DWP and HMRC to ensure support is targeted at those who need it and are eligible; to determine if a payee received the correct payments and identify the payment value; and to reduce the risk of fraud.
To get the £301 payment someone must (subject to a very limited exception explained below) have been entitled to a payment of a qualifying benefit as follows:
For Universal Credit, payment in respect of an assessment period ending between the 26 January 2023 to the 25 February 2023
For all other DWP means-tested benefits, payment in respect of any day between 26 January and 25 February 2023.
For tax credit-only customers to be eligible they must have received a payment of tax credits in respect of any day in the period 26 January 2023 to 25 February 2023, or later be found to have been entitled to a payment for this period.
Those on DWP benefits other than Universal Credit who are entitled to less than 10 pence and meet all other qualifying criteria but who do not receive a benefit payment, will still receive a Cost of Living Payment.
More than 6 million people on qualifying disability benefits will receive a Disability Cost of Living Payment of £150 during Summer 2023. This includes those in receipt of one of the following benefits:
Disability Living Allowance;
Personal Independence Payment;
Attendance Allowance;
Scottish Disability Benefits;
Armed Forces Independence Payment;
Constant Attendance Allowance;
War Pension Mobility Supplement.
The £300 Pensioner Cost of Living Payment will be paid to all households in receipt of Winter Fuel Payments, in the same way as 2022/23 payments were made.
Payment windows and eligibility dates for the remaining Cost of Living Payments will be announced in due course.
Millions of the lowest-income households across the UK will get up to £1,350 from the Government in 2023/4 to help with the cost of living
Millions will receive new cost of living support from Spring 2023, following up to £1,200 in support for over eight million low-income households in 2022
£900 Cost of Living Payment for means-tested benefit claimants will go direct to bank accounts in three payments over the financial year
Extra cash support for disabled people and pensioners will see some households receive extra cash
The Department for Work and Pensions (DWP) has announced more detail on the payment schedule for the next round of cost of living support unveiled in the Chancellor’s Autumn Statement, building on payments made to over eight million people in 2022.
The new £900 cash boost for over eight million eligible means-tested benefits claimants, including those on Universal Credit, Pension Credit and tax credits, starts in Spring and will go direct to bank accounts in three payments over the course of the financial year. There will also be a separate £150 for over six million disabled people and £300 for over eight million pensioners on top of their Winter Fuel Payments.
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.”
If individuals are eligible they will be paid automatically, and there will be no need to apply. Claimants who are eligible for any of the Cost of Living Payments and receive tax credits, and no other means-tested benefits, will receive payment from HMRC shortly after DWP payments are issued.
These payments build on the Government’s extensive support package to help households tackle the globally rising cost of living stemming from the pandemic and the war in Ukraine.
The Government’s Energy Price Guarantee continues to cap energy costs, saving the average household around £900 this winter and a further £500 in 2023/24.
Benefits, including working age benefits and the State Pension, will also rise in line with inflation from April 2023, ensuring they increase by over 10%. April will also see the biggest ever cash rise to the National Living Wage, bringing it to £10.42 an hour, and a further year-long extension of the Household Support Fund in England and associated devolved nation funding worth £1 billion in total.
This comes on top of the 2022 support package, which included:
A £650 Cost of Living payment for means-tested benefit claimants, split into two payments, each of which supported over eight million households
Further £300 and £150 payments, which reached over eight million pensioners and over six million disabled people respectively
A £150 Council Tax rebate for all households in Council Tax bands A-D
A £400 energy bill discount for all households, which will continue to run through March
As of today (30 September) the Department for Work and Pensions has processed almost six million £150 Disability Cost of Living payments worth around £900 million.
This follows the government’s announcement on 20 September that those who had confirmed payment of their disability benefit for 25 May will receive the £150 automatically, with the vast majority to be paid by early October.
The vast majority of eligible claimants who were due to receive the one-off £150 payment from the DWP by early October have now had their payment processed.
The payment will help disabled people with the rising cost of living, acknowledging the higher costs they often face, such as for care and mobility needs.
There will be some cases – such as those who gained entitlement to this payment at a later date or where payments were rejected due to invalid account details – who will not be paid by the beginning of October. These will be paid automatically as soon as possible.
The £150 cost of living payments for disabled people from the government are part of a £37 billion package of support, which will see millions of low income households receive at least £1,200 this year to help cover rising costs.
This also follows the Prime Minister’s announcement of a new Energy Price Guarantee for the next two winters, saving households on average £1,000 a year on their energy bills.
Further information
The Energy Price Guarantee (EPG) will apply from 1 October and will discount the unit cost for gas and electricity use. This guarantee, which includes the temporary suspension of green levies, means that from 1 October a typical household will pay no more than £2,500 per year for each of the next two years. This is in addition to the £400 Energy Bill Support Scheme.
On top of the EPG and £150 Disability Cost of Living Payment, there is an extra £150 for properties in Council Tax bands A-D in England. On top of this, disabled people on low incomes may also be eligible for the other Cost of Living payments totalling up to £650 – households in receipt of a means-tested benefit received the first of the two automatic Cost of Living payments of £326 from 14 July. The second means-tested payment of £324 will be issued later this year.
Eligibility
Those who receive the following disability benefits may be eligible for the one-off payment of £150 in September: 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 and War Pension Mobility Supplement.
The majority of those who had confirmed payment of their disability benefit for 25 May have now been paid. For those who have still to be paid, are awaiting confirmation of their disability benefits on 25 May, or who are waiting to be assessed for eligibility to receive disability benefits, the process may take longer but payments will still be automatic.
You must have received a payment (or later receive a payment) of one of the qualifying benefits for 25 May 2022 to get the payment.
HMRC recently confirmed that HMRC’s first Cost of Living Payment to 1.1 million claimant families receiving tax credits will be made between 2 and 7 September 2022. The first HMRC payments will total around £360 million.
We are now letting you know that we have started to issue these payments.
If tax credits customers believe they are eligible but have not received a £326 payment between the published payment dates, they should wait until 16 September to contact HMRC. This is to allow time for their bank, building society or credit union to process the payment.
The UK Government is offering help for households. Customers should check GOV.UK to find out what cost of living support they could be eligible for.
Background:
Details of HMRC’s first Cost of Living Payment to tax credit-only customers, with quotes and scam warning advice, can be found here:
Cost of Living payments were announced in May 2022. Details of DWP and HMRC payments were also publicised in June,JulyandAugust 2022. The latest payment schedule information is available here.
As well as the Cost of Living Payment, other government support includes:
£400 discount from the UK Government to help with the cost of energy bills from October onwards
£300 Pensioner Cost of Living Payment that will be paid alongside Winter Fuel Payments
£150 Disability Cost of Living Payment from 20 September for those receiving an eligible UK disability benefit.
This is in addition to changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants; a rise in the National Living Wage to £9.50 an hour; and a tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.
