What Cost of Living Payments will UK Households Get?

Cost of Living Payments will be made by the UK government in 2023. We list what they are and who can be eligible for them.

What Cost of Living Payments will UK Households Get


some households may get more financial support than others

The UK government is to make Cost of Living payments in 2023 to UK households, especially to those in need of this much-needed support.

Payments of up to £900 for people on an eligible low-income benefit, £300 for pensioner households and £150 for people on an eligible disability benefit are to be made.

These payments will try to lessen the impact of high energy bills, food expenses, and other requirements will be made to certain benefit seekers, retirees, and people with disabilities.

While some of the assistance for 2023 expands on the initiatives that were announced in 2022, others are completely new and have not yet been given any specifics.

Your specific situation will determine how much money is made available to you, and some households may get more financial support than others.

Here are the 2023 payments to be made by the UK government if you are eligible.

Low-Income Benefits and Tax Credits

If you are on low-income benefits and/or tax credits you may get a payment of £650.

Benefits eligible for the payment are as follows.

  • Universal Credit
  • Income-based Jobseeker’s Allowance (JSA)
  • Income-related Employment and Support Allowance (ESA)
  • Income Support
  • Pension Credit
  • Child Tax Credit
  • Working Tax Credit

The payment is to be paid in two lump sums of £326 and £324 and shall be made separately from your benefit.

You are not entitled to the payment if you get the New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker’s Allowance.

For those of you with a joint claim with a partner, if you are eligible, you will get only one payment of £326 and one payment of £324 for your joint claim.

The HM Revenue & Customs (HMRC) will pay you the payment if you get both Child Tax Credit and Working Tax Credit.

You will get a Cost of Living Payment from the Department for Work and Pensions (DWP) only if you are in receipt of tax credits from HMRC and a low-income benefit from DWP.

Pensioner Cost of Living Payment

All pensioners who typically get the Winter Fuel Payment are now eligible to receive the current Pensioner Cost of Living Payment of up to £300.

A second one-time payment of £300 will be made in April 2023, as promised by British chancellor, Jeremy Hunt in his Autumn Statement.

It’s expected that further information about the payout requirements will be released in 2023.

Disability Cost of Living Payment

People with disabilities received a £150 payment in 2022 to help with living expenses.

The Chancellor, Jeremy Hunt confirmed that the second £150 payment will be granted once again in 2023.

However, in order to be eligible for the first disability cost of living payment, you had to be claiming a specific disability benefit.

The payment’s eligibility requirements have not yet been disclosed.

Benefits like Attendance Allowance, Disability Living Allowance (DLA), Personal Independence Payment (PIP), or War Pension Mobility Supplement were included.

Discount on Energy Bills

The savings on energy bills of £400, which went into effect in October 2022, will last until March 2023.

Energy suppliers will apply the £67 savings to your monthly bill if you pay by direct debit, and it will be applied to all homes in the UK for the months of January, February, and March.

If you have a credit meter or a smart prepayment meter, the discount will immediately be deducted from your invoices or credited to your account.

If you have a regular prepayment metre, however, you will get the discount in the form of a voucher that must be used at their neighbourhood top-up location within three months of receiving it.

Cold Weather Payment

When the local temperature is expected to fall below zero degrees celsius for seven consecutive days between November 2022 and March 2023, a cold weather payment of £25 is issued.

People who are receiving specific benefits, such as Universal Credit, Income assistance, or Pension Credit, automatically get the payment.

Thousands of people in England and Wales will have already received many £25 payments as a result of December’s Cold weather payment trigger, which affected hundreds of postcodes.

People may get additional payments in their bank accounts in the first few months of 2023 if the UK has another cold storm.

Discount for Warm Homes

The Warm Home Discount programme for the winter of 2022–2023 is worth £150 to those that qualify.

The precise prices for 2023–2024 have not yet been disclosed by the government, although it operates annually.

There are some pensioners and low-income people on specific benefits who are eligible for a warm home discount.

Instead of paying cash into your bank account, your provider will deposit the money straight into your energy account.

You will often receive a top-up coupon if you have a prepaid meter.

If either you or your partner is eligible for the Guarantee Credit component of Pension Credit, you should immediately receive the payment.

If you have high energy bills, low income, and certain perks, you can also be eligible for the Warm Home Discount.

You can find out more information about the cost of living payments on the UK government website here.

Ilsa is a digital marketeer and journalist. Her interests include politics, literature, religion and football. Her motto is “Give people their flowers whilst they’re still around to smell them.”

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