Nearly £5 billion of support has been paid to help households with their energy bills this winter
Over £4 billion was paid to pensioners between November and March through the Winter Fuel Payment and Pensioner Cost of Living Payment
An estimated £550 million has been spent this winter as part of the Warm Home Discount to support three million households
Over 1.1 million £25 Cold Weather Payments have been made to households in England and Wales
Halving inflation has ensured everyone’s money goes further, however we remain committed to supporting households across the country with 11.8 million pensioners receiving up to £600 in Winter Fuel Payments and Pensioner Cost of Living Payments.
On top of this, the Department for Work and Pensions (DWP) has today estimated over 1.1 million Cold Weather Payments worth £29.6 million were paid out from November until the end of March – with over £9 million of this going to low-income pensioners receiving Pension Credit.
Further support was also made available through the Warm Home Discount – to support three million households at risk of fuel poverty, allowing families to keep costs down and more money in their pockets. The Government expects partnered energy suppliers to have spent around £550 million this winter across Great Britain, through direct bill rebates as well other financial and energy efficiency support.
This support was needed to protect everyday Brits from the inflationary impact of Putin’s illegal war in Ukraine – helping millions of people get through the winter. Now – with energy bills dropping, wages rising, and taxes being slashed – people are set to have more cash in their pocket to help fire up the economy and beckon in more growth.
We have turned a corner after the shocks of the past few years, and we are in a new economic moment and 2024 will prove to be the year that the economy bounces back.
Minister for Pensions, Paul Maynard said: “This Government’s actions have provided vital support to pensioners most in need.
“Halving inflation has helped everyone’s finances, and we remain committed to protecting our older loved ones across the country, with 11.8 million pensioners receiving up to £600 in Winter Fuel and Pensioner Cost of Living Payments.
“And we are uprating the State Pension further from next week, meaning the full yearly basic State Pension will be £3,700 higher than in 2010, whilst the full rate of the New State Pension will rise above £11,500 a year.”
From this week people will start to see an increase in their Local Housing Allowance rates – benefitting some of the poorest families on either Universal Credit or Housing Benefit who will gain around £800 a year on average. This puts more money in the pockets of the lowest earners – giving them more spending power to boost their local economy.
The UK Government is delivering £108 billion of support over 2022-2025 – worth an average £3,800 per household – and will continue to drive down inflation to help everyone’s money go further.
These measures are boosted in April with Universal Credit and other benefits rising in line with inflation by 6.7 percent, and the State Pension increasing by an inflation-busting 8.5 percent – making sure that targeted support is going to those who need it most.
DWP urges pensioners to act quickly and check if they are eligible for Pension Credit by 5 March 2024
Eligible people who claim by this date could secure additional £299 Cost of Living boost
Claiming the benefit could also open doors to additional help with housing costs, council tax, and heating bills
Hundreds of thousands of pensioners could pocket an extra £299 if they claim Pension Credit in the next 10 days.
Those who successfully apply for Pension Credit by 5 March could also secure a further £299 boost in the form of a Cost of Living payment thanks to backdating rules.
Pension Credit, which averages over £3,900 a year, is there to lend a hand with day-to-day expenses for those who have reached State Pension age and are on a low income.
Minister for Pensions Paul Maynard said: “We are committed to ensuring every pensioner receives the financial support available to them.
“Anyone who is unsure whether they or a loved one is entitled to Pension Credit should quickly check using our online Pension Credit calculator – it’s never been easier.
“Not only could this secure an extra £3,900 every year and unlock a whole host of other support, if successfully claimed by 5 March a further £299 Cost of Living boost is up for grabs.”
While around 1.4 million pensioners are already receiving Pension Credit, there are an estimated 880,000 households eligible for the support who are yet to claim it.
For single pensioners, Pension Credit guarantees a minimum weekly income of £201.05; for couples, it’s £306.85. Additional help is also available for those with disabilities or caring responsibilities.
And even small amounts of Pension Credit could open doors to further financial assistance, covering things like housing costs, council tax, and heating bills, as well as potentially the £299 backdated Cost of Living payment.
You can apply for Pension Credit over the phone, online, or by post. And for anyone unsure about eligibility or how much they might get, the online Pension Credit calculator tool can help.
The State Pension is due to rise by 8.5% in April 2024 – meaning the new full State Pension will be worth £221.20 per week.
For more information visit the Pension Credit GOV.UK page. For extra resources for stakeholders and businesses, the department has also produced a Stakeholder Toolkit.
Around 700,000 families, who receive tax credits and no other qualifying benefits, will receive their £299 Cost of Living Payment from today, 16 February 2024, to help with everyday costs.
HM Revenue and Customs (HMRC) is making the payments to eligible tax credits customers across the UK between 16 and 22 February 2024.
More than7 million eligible UK households have already received the £299 payment directly from the Department for Work and Pensions (DWP), which is paying its customers between 6 and 22 February 2024.
This is the third of three payments totalling up to £900 for those eligible and on means-tested benefits, such as Universal Credit, Pension Credit, or tax credits, in 2023/24 and comes as part of the UK Government’s £104 billion cost of living support package.
These payments are tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
Myrtle Lloyd, HMRC Director General for Customer Services, said:“The £299 Cost of Living Payment will deliver further financial support to eligible tax credits customers across the UK. To make things as simple as possible, the payment is made automatically with no action required from HMRC’s customers.”
The payment from HMRC to tax credits customers will appear on bank statements as ‘HMRC COLS’, referencing Cost of Living Support. Those receiving the payment from DWP will see the payment reference as their National Insurance number followed by ‘DWP COL’.
If customers have not received the Cost of Living Payment from HMRC between the published payment dates, but believe they are eligible, they should wait until after 23 February to contact us. This is to allow time for their bank, building society or credit union to process the payment.
Receiving a previous Cost of Living Payment does not guarantee customers will get this payment. Customers must meet the individual eligibility criteria for each payment, as published on GOV.UK.
Payment from HMRC will be made automatically into the bank account where eligible customers receive their tax credits. They do not need to do anything to receive a payment. They do not need to contact HMRC or apply for the payment.
Customers should beware of scams targeting Cost of Living Payments. If someone contacts them about this payment saying they are from HMRC or DWP, it might be a scam. People can check advice on spotting scams by visiting GOV.UK and searching ‘HMRC phishing and scams’. They can also check on GOV.UK that any contact is genuinely from HMRC.
Additional information
The Cost of Living Payments – worth £900 in total in 2023/24 – come on top of a significant package of support which has been delivered since autumn 2021. Including:
Cutting taxes for over 29 million working people this year through a 2% cut to Class 1 National Insurance Contributions, worth £450 per year on average.
Cutting taxes for self-employed people by cutting Class 4 contributions, benefitting 2 million people, and abolishing Class 2 contributions, a tax cut worth an average of £350 per year.
Paying three million households the £150 Warm Home Discount this winter and 8.9 million pensioner households up to £600 in Winter Fuel Payments in December last year.
Providing the £650 Cost of Living Payments in 2022/23 and an additional cash boost on top of this payment including £300 to pensioner households; £150 to disabled individuals in 2022 and last year.
Paying around half of the typical household energy bill between October 2022 and July 2023 through our Energy Price Guarantee and £400 support scheme.
Extending the 5p fuel duty cut and cancelling the planned increase – saving the average driver £100 this year.
Increasing the Universal Credit work allowance and cutting the taper rate, which was worth an extra £1,000 a year to families on Universal Credit.
Vulnerable people will continue to be supported with the cost of living from April this year by:
Uprating benefits in line with inflation by 6.7%.
Maintaining the triple lock and increasing the state pension by 8.5% - after the largest ever cash increase last year for around 12 million pensioners.
Investing £1.2 billion to restore Local Housing Allowance rates to the 30th percentile of local market rates, meaning 1.6 million private renters will see nearly £800 in additional help.
Increasing the National Living Wage by its largest ever cash amount in April – worth over £1,800 to the gross annual earnings of a full-time worker – and lowering the age threshold for eligibility by 2 years.
We encourage people in need of additional support over the winter to check their eligibility through the UK Government’s Help for Households website for the various cost of living schemes that are place.
From today low-income households will start to receive the third and final Cost of Living Payment worth £299
Payments are part of the £104 billion Cost of Living support which includes uprating benefits by 6.7% and pensions by 8.5%
Comes as more people are set to secure long-term financial security through work thanks to the next generation of welfare reforms
Millions of households across the UK will start to receive a £299 Cost of Living Payment from today until 22 February as part of the Government’s £104 billion Cost of Living support package.
The payment will be sent out automatically and recipients do not need to apply to receive it. This includes tax credits-only customers who will receive the payment from HMRC between 16 and 22 February.
It is the third of up to three payments totalling up to £900 paid to eligible households on means-tested benefits over 2023/24 and comes as part of a support package that has helped millions of households since autumn 2021.
Our economy has turned a corner, and we are moving away from the big government, high spending, high borrowing, and high tax approach that was necessary before, and focusing on the long-term decisions required to strengthen our economy and give people the opportunity to build a wealthier, more secure life for themselves and their family.
This includes sticking to the plan to keep inflation down – which has already more than halved – and cutting taxes for hard working people to help them keep more of what they earn and drive down the Cost of Living.
The government says supporting people into well paid jobs is the best way to help people out of poverty and to give people long term financial independence. That’s why we’re introducing the next generation of welfare reforms, including unprecedented employment and health support to give people long term financial security.
The government says the £2.5 billion Back to Work Plan will break down barriers to work and offer intensive support to those unemployed earlier, while the Chance to Work Guarantee will mean millions of disabled people can try work free from the fear that they could lose their benefits. As well as this, real wages grew 1.3% in the year up to November 2023.
This forms part of wider plans to get Britain working, by tackling inactivity and unemployment, while continuing to support those most in need.
Mel Stride, Secretary of State for Work and Pensions, said: “The economy has turned a corner, and with inflation falling we are providing millions of the most vulnerable households with another significant cash boost.
“Our fair approach to welfare is underpinned by a belief that the best way to secure long-term financial security is through work.
“This is why we have cut taxes for over 27 million working people and have launched a £2.5 billion Back to Work Plan to help thousands more people off benefits and into jobs.”
Chancellor of the Exchequer Jeremy Hunt said: “Our decisive action helped to more than halve inflation last year while building the foundations for long-term growth through sensible tax cuts, which will help people’s money go further.
“But the legacy of Covid and the ongoing Ukraine war has meant the last few years have been tough for many, which is why we’ve provided one of the largest support schemes in Europe worth £3,700 for the average household.”
UK Government Minister for Scotland John Lamont said: “This crucial Cost of Living Payment will benefit more than 680,000 people across Scotland.
“We are continuing to help those who need it most and putting more money in the pockets of hard-working families by cutting national insurance and halving inflation.”
Welsh Secretary, David TC Davies said: “Over 400,000 households in Wales will be receiving this payment directly into their bank accounts to help them with the Cost of Living.
“This payment is just part of the £104 billion package that the UK Government has put in place to ensure those most in need are supported.”
The Cost of Living Payments – worth £900 in total – come on top of a [significant package of support’ which has been delivered since autumn 2021. Including:
Cutting taxes for over 27 million working people this year through a 2% cut to Class 1 National Insurance Contributions, worth over £450 per year for the average worker.
Cutting taxes for self employed people by cutting Class 4 contributions, benefitting 2 million people, and abolishing Class 2 contributions, a tax cut worth an average of £350 per year.
Paying three million households the £150 Warm Home Discount this winter and 8.9 million pensioner households up to £600 in Winter Fuel Payments in December last year.
Providing Cold Weather Payments to vulnerable households to help them with their energy bills during winter. The scheme – which runs from 1 November 2023 to 31 March 2024 – provides low-income households with an automatic payment of £25 following periods of cold weather.
Providing the £900 Cost of Living Payments in 2022 and an additional a cash boost on top of this payment including £300 to pensioner households; £150 to disabled individuals in 2022 and last year.
Capping single bus fares at £2 outside of London until the end of next year to help millions of people make significant savings on their travel costs. The fare cap has helped cut bus fares in England by 7.4% between June 2022 and June 2023
Paying around half of the typical household energy bill between October 2022 and July 2023 through our Energy Price Guarantee and £400 support scheme.
Extending the 5p fuel duty cut and cancelling the planned increase – saving the average driver £200 over two years.
Covering 85% of childcare costs for working households on Universal Credit, up from 70% under the legacy system – currently worth over £19,500-a-year for families with two children.
Expanding Free School Meals to 5–7-year-olds – benefitting 1.3 million children and boosting the value of Healthy Start vouchers by over a third – from £3.10 to £4.25.
Increasing the Universal Credit work allowance and cutting the taper rate, which was worth an extra £1000 a year to families on universal credit.
The UK Government says it will continue to support vulnerable people with the Cost of Living from April this year by:
Uprating benefits in line with inflation by 6.7%.
Maintaining the triple lock and increasing the state pension by 8.5% - after the largest ever cash increase last year for around 12 million pensioners.
Investing £1.2 billion to restore Local Housing Allowance rates to the 30th percentile of local market rates, meaning 1.6 million private renters will see nearly £800 in additional help.
Increasing the National Living Wage by its largest ever cash amount in April– worth over £1,800 to the gross annual earnings of a full-time worker – and lowered the age threshold for eligibility by 2 years.
The changes coming into force in April are part of the UK Government’s £104 billion Cost of Living package worth an average £3,700 per household, including the £900 in direct Cost of Living Payments for those on means-tested benefits.
People in need of additional support over winter are encourqged to check their eligibility through the Help for Households website for the various Cost of Living schemes that are place.
Eligible low income households urged to make sure they get £150 in Warm Home Discount before 29 February
Low income households who qualify for the Warm Home Discount are urged to make sure they get the £150 discount.
Most of the 3 million households who qualify will automatically receive this energy bill support.
Households who need to confirm their details must do so by the end of February.
People on low incomes could benefit from a £150 rebate on their energy bills – and are being urged to act now where they need to, so they can get the support before this year’s scheme closes.
The help is available to over 3 million households across Great Britain that are most at risk of fuel poverty, with many receiving the discount automatically. However, some customers in England and Wales have been sent a letter asking them to confirm their details by calling the Warm Home Discount Helpline so they can check their eligibility and get the rebate.
To mark Big Energy Saving Week, Minister for Affordability and Skills Amanda Solloway is today urging any of these households who need to provide more information to call the helpline by 29 February and get the support they are entitled to.
The scheme forms part of measures to keep costs down for families and put more money in their pockets. It targets support to protect those most at risk of fuel poverty this winter, following a significant drop in energy prices since their peak last year and the Government delivering on its pledge to halve inflation – which is now at a two-year low of 3.9%.
Tax cuts announced at the start of the year will also support 27 million people across the UK, meaning a household with two average earners will save nearly £1,000 a year.
Minister for Affordability and Skills Amanda Solloway said: “We will always act to support the most vulnerable – and this means making sure those most in need are getting the right support.
“Today, I am urging people on low incomes who have been notified about the Warm Home Discount to make sure they act now to get £150 off their energy bill.
“Please check your letter and call our helpline before the end of February if you need to provide more information.”
The UK government’s Warm Home Discount offers targeted energy bill support for those most in need. This includes low income pensioners and households in England and Wales with high energy costs.
These customers received a letter at the end of last year explaining the discount and instructions on any action they may need to take.
For the vast majority of these customers, the discount is automatically applied to bills between October 2023 and March 2024, or is available as a top-up voucher for those with a prepayment meter.
However, some people in England and Wales who received a letter and could qualify for the support have been asked ring the government helpline number provided in their letter to confirm their details.
In Scotland, customers on low incomes who have not received a letter may still be eligible and should apply via a different route, by contacting their energy supplier as soon as possible.
The support comes on top of wider action to protect vulnerable households, including a £900 payment for those on means-tested benefits, £300 for pensioner households and an extra £150 available for those on disability benefits.
The Government has also invested over £2 billion into the Household Support Fund over the last two years, increased the Local Housing Allowance Rate so £1.6 million private renters on Housing Benefit or Universal Credit gain an average of nearly £800 a year and £600 in tax-free cash for pensioner households to help with energy bills through Winter Fuel Payments.
Cold Weather Payments have also been triggered to help households receiving certain benefits to stay warm this winter. The scheme – which runs until March 2024 – provides low-income households with an automatic payment of £25 following periods of cold weather.
Anyone can access advice on how to reduce energy costs and heat their home for less via the government’s Help for Households website. This includes energy saving tips as part of the It All Adds Up campaign, which helped British households an estimated £120 million on their energy bills last winter.
Around 840,000 families, who receive tax credits and no other qualifying benefits, will receive their £300 autumn Cost of Living Payment from today, to help with everyday costs.
HM Revenue and Customs (HMRC) is making the payments to eligible tax credits customers across the UK between 10 and 19 November 2023.
In addition, more than 7 million eligible UK households are receiving £300 directly from the Department for Work and Pensions (DWP) between 31 October and 19 November 2023.
This is the second of three payments totalling up to £900 for those eligible and on means-tested benefits, such as Universal Credit, Pension Credit, or tax credits, in 2023 to 2024.
Chief Secretary to the Treasury, John Glen, said:“I know Christmas can be a difficult time, which is why this £300 payment will come as a welcome boost for hundreds of thousands of families.
“But the best help we can give is halving inflation this year.”
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said:“The £300 Cost of Living Payment will deliver further financial support to eligible tax credits customers across the UK. Another payment will be made by spring 2024 to those entitled to receive it.
“HMRC customers will receive the payment automatically, with no action required from them, to make this as simple as possible.”
The payment from HMRC to tax credits customers will appear on bank statements as ‘HMRC COLS’, referencing Cost of Living Support. Those receiving the payment from DWP will see the payment reference as their National Insurance number followed by ‘DWP COL’.
If customers have not received the Cost of Living Payment from HMRC between the published payment dates, but believe they are eligible, they should wait until after 20 November to contact us. This is to allow time for their bank, building society or credit union to process the payment.
Receiving a previous Cost of Living Payment does not guarantee customers will get a future one. Customers must meet the individual eligibility criteria for each payment, as published on GOV.UK.
Payment from HMRC will be made automatically into the bank account where eligible customers receive their tax credits. They do not need to do anything to receive a payment. They do not need to contact HMRC or apply for the payment.
Pensioner households will also receive £300 which will be paid as a top up to those eligible for the Winter Fuel Payment in November and December. Combined with the one-off Cost of Living Disability Payment earlier this year, some households will receive £1,350 in total.
Customers should beware of scams targeting Cost of Living Payments. If someone contacts them about this payment saying they are from HMRC or DWP, it might be a scam. People can check advice on spotting scams by visiting GOV.UK and searching ‘HMRC phishing and scams’. They can also check on GOV.UK that any contact is genuinely from HMRC.
Millions of people across the country are set to receive significant cost of living support ahead of winter, with the second instalment of the cost-of-living payment – worth £900 in total – landing directly in bank accounts from today
Significant cost of living support to come into effect from today as millions of households set to receive second £300 payment
Comes as £2 bus fare cap in England extended with millions of people also set to benefit from lower travel costs
Prime Minister continues to support families with the cost of living ahead of winter as we are on track to halve inflation
Millions of people across the country are set to receive significant cost of living support ahead of winter, with the government freezing bus fares in England and the second cost-of-living payment – worth £900 in total – landing directly in bank accounts from today.
The bus fare cap had been due to rise to £2.50 but the government is keeping the fares down at £2 until the end of next year to help millions of people make significant savings on their travel costs. The fare cap has helped cut bus fares in England outside London by 7.4% between June 2022 and June 2023, with even bigger savings in rural areas where fares have dropped by almost 11%.
This government says the extension is only possible due to the redirected HS2 funding as part of the Network North plan and takes the total government investment to keep bus fares down to nearly £600 million – with over 140 operators signing up to continue offering the cap across more than 5,000 routes.
Over 8 million households across the UK will also receive the second of up to three payments from today, totalling up to £900 through 2023/24 with a further cost of living payment due to be made to eligible households by next Spring.
These payments are entirely tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards. Those who are eligible will be paid automatically and do not need to apply for the payment or do anything to receive it.
Prime Minister Rishi Sunak said: “I know that winter can be a particularly challenging period for many families across the country. That’s why we have put in place a package of immediate support for vulnerable households over the coming months.
“We are lowering travel costs through the bus fare cap, which we are able to do because of our long-term decision to cancel phase 2 of HS2. We are also providing an extra top up to help pay energy bills and direct payments to cover the cost of day-to-day essentials.
“But the best way to put more money in the pockets of hardworking people is to focus on the long-term decisions that will help not only them, but future generations too. We’re on track to halve inflation which will help people’s wages go further, and we’re growing the economy to create better paid jobs and opportunities across the country.”
The government is also committed to helping vulnerable households across the UK with their energy bills over winter. Winter Fuel Payments – boosted again this year by an additional £300 per household Pensioner Cost of Living payment – will provide pensioners with up to £600 to help with heating costs over the colder months.
On top of this, nearly three million low-income households are also eligible for a £150 rebate on their winter electricity bills through the Warm Home Discount. From tomorrow (1st November) Cold Weather Payments will also come into effect to provide eligible households £25 extra a week when the temperature is zero or below for more than seven days across the UK.
Transport Secretary Mark Harper said: “Buses are the most popular form of public transport and help people across the country get to work, attend medical appointments, and see loved ones – that’s why we are extending the ‘Get Around for £2’ scheme all the way to 31 December 2024.
“Extending the £2 bus fare cap has only been possible with the redirected HS2 funding secured by this Government making the right long-term decisions for a brighter future, delivering immediate benefits and helping people save money.”
Mel Stride, Secretary of State for Work and Pensions, said: “Tackling inflation is the best way to boost people’s incomes, but as we work to halve it, we are protecting the most vulnerable households from high prices with this latest Cost of Living payment.
“Thousands of Work Coaches based in Jobcentres across the country are on hand to help people find work or enhance their skills, and I encourage anyone wanting to strengthen their finances and unleash the benefits of work to contact their local Jobcentre to see what help is available.”
Taken together, these measures build on the significant cost of living support already provided to eligible households throughout last year – now worth an average of £3,300 per household over this year and last.
The government says it has also gone further by:
Increasing benefits in line with inflation, meaning more than 10 million working age families will see an average increase of around £600.
Maintaining the Triple Lock earlier this year to give around 12 million pensioners the largest ever cash increase to the State Pension.
Extending the Household Support Fund for another year in England to help families with essential costs with £1 billion of extra funding.
Increasing the National Living Wage by its largest ever cash amount for 2 million workers – worth over £1,600 to the annual earnings of a full-time worker – and committing to increase it to over £11 an hour from April 2024.
Cutting fuel duty by 5 pence and freezing the increase, worth £100 to the average driver this year.
Covering up to 85% of childcare costs for working households on Universal Credit, up from 70% under the legacy system – currently worth over £19,500-a-year for families with two or more children.
The government says it has ‘a strong record on supporting the most vulnerable and lifting households out of poverty’, with the latest data showing there were nearly 1 million fewer workless households since 2010 and 1.7 million fewer people in absolute poverty after housing costs over the last decade.
They maintain the best route out of poverty is through work, ‘which is why we’ve introduced a package of measures worth £3.5 billion to break down the barriers for people to find jobs and fulfil their potential. This includes our flagship Universal Support scheme which will get thousands more people into jobs with a personal adviser providing wraparound support for up to a year while they find their feet.
‘We encourage people in need of additional support over winter to check their eligibility through our Help for Households website for the various cost of living schemes that are place.’
Almost 430,000 18-21 year olds with an unclaimed Child Trust Fund, worth an average of £2,000, are being urged by HM Revenue and Customs (HMRC) to claim their cash as part of UK Savings Week (18 to 24 September 2023).
Child Trust Funds are long-term, tax-free savings accounts and were set up for every child born between 1 September 2002 and 2 January 2011, with the UK Government contributing an initial deposit of at least £250. Funds can be withdrawn once the account matures when the child turns 18.
A recent student survey, conducted by UCAS, asked first and second year university students about Child Trust Funds and the results showed that they were most interested to know how much money was in their account (43%) and how to claim it (32%). The survey also revealed 60% of students got their information about Child Trust Funds from their parents.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:“Many 18-21 year olds are starting out in first jobs or apprenticeships, starting university or moving into their first home and their Child Trust Fund is a pot of money with their name on.
“I would encourage young people to use the online tool to track it down or, for parents of teenagers, to speak to them to ensure they’re aware of their Child Trust Fund. It could make a real difference to their future plans.”
There are currently 5.3 million open Child Trust Fund accounts. Young people aged 16 or over can take control of their own Child Trust Fund, although the funds can only be withdrawn once they turn 18. More than 500,000 matured Child Trust Fund accounts have been claimed or transferred into an ISA since the oldest children on the scheme turned 18 in September 2020.
Families can continue to pay in up to £9,000 a year tax-free into a Child Trust Fund until the account matures. The money stays in the account until the child withdraws or reinvests it into another account.
The UCAS survey revealed that 74% of respondents were aware of Child Trust Funds.
Further findings include:
more men (75%) were aware of Child Trust Funds compared to 73% of women
78% of 19 year olds were aware of Child Trust funds compared to 71% of 20 to 21 years olds
of the people who had not yet claimed their Child Trust Fund, 76% of respondents were likely to take steps to learn more about how to withdraw it.
Sharon Davies, CEO of Young Enterprise, said: “We would encourage all young people to investigate if they have money which is unclaimed in a Child Trust Fund and to use it wisely.
“A disproportionate amount of the money is unclaimed by young people from disadvantaged backgrounds who are the very people who would benefit most from these funds. The investment could be placed into an adult ISA or put towards driving lessons, education or starting a business.
“The money in a Child Trust Fund has the potential to be life changing and the lack of knowledge about them shows the importance of financial education and financial planning from a young age”.
The UK Government is offering help for households. Check GOV.UK to find out what cost of living support you could be eligible for.
Millions of households across the UK will receive £300 directly from the Department for Work and Pensions (DWP) between 31 October and 19 November
Millions of households to receive £300 from DWP between 31 October and 19 November 2023
This is the second of 3 payments totalling up to £900 supporting eligible people on means-tested benefits with the cost of living
Payments make up part of government’s record financial support for the most vulnerable worth an average of £3,300 per household
Tax credits-only customers who do not qualify for a payment from DWP will receive £300 from HMRC between 10 and 19 November 2023
Millions of households across the UK will receive £300 directly from the Department for Work and Pensions (DWP) between 31 October and 19 November.
This is the second of 3 payments totalling up to £900 for those eligible and on means-tested benefits, such as Universal Credit, Pension Credit, or tax credits, in 2023 to 2024, and eligible pensioner households will also receive a further £300 payment later this year as an addition to the Winter Fuel Payment.
The £300 Cost of Living Payment will be sent out automatically and directly to recipients, meaning those eligible do not need to apply, contact the Government, or take any action to receive it. This includes tax credits-only customers who will receive the payment from HM Revenue and Customs (HMRC) between 10 and 19 November 2023.
The payment reference for bank accounts will be the recipient’s National Insurance Number followed by DWP COL or HMRC COLS.
Mel Stride, Secretary of State for Work and Pensions, said: “The best way we can boost bank balances is by bearing down on inflation, but as we get there, we are ensuring the most vulnerable households are cushioned from high prices with a further Cost of Living payment.
“Alongside this, thousands of Work Coaches across the country are helping find work, increase their hours and boost their skills. I encourage anyone who wants to progress their career and strengthen their finances to visit their local Jobcentre to find out what help is available.”
Jeremy Hunt, Chancellor of the Exchequer, added: “Halving inflation and getting price rises under control is the best way to support households struggling with their bills.
“But it is also right that we are helping the most vulnerable in our society, and this latest Cost of Living payment is part of a package of support worth £3,300 per household on average over this year and last to help those struggling the most.”
The full list of benefit recipients that qualify for the second Cost of Living Payment are those who are eligible and receive at least one of the following:
Universal Credit
Income-based Jobseekers Allowance
Income-related Employment and Support Allowance
Income Support
Working Tax Credit
Child Tax Credit
Pension Credit
To be eligible for the Cost of Living Payment from DWP, you need to have been entitled to a payment for a qualifying benefit between 18 August 2023 and 17 September 2023, or payment for an assessment period, ending between these dates. From HMRC, you need to have received a payment of tax credits for any day in the period between 18 August 2023 and 17 September 2023.
The DWP continues to encourage low-income pensioners not already getting Pension Credit to check their eligibility, as – thanks to Pension Credit backdating rules – they could still qualify for both the second Cost of Living Payment as well as the third payment due in Spring 2024.
Over eight million pensioner households will also receive a further £300 payment later this year in addition to the Winter Fuel Payment.
