- Home
- Money
- Everyday Finance
- Who receives cost of living payments and how do they work?
The £900 cost of living government support package was paid in three separate instalments, with the final £300 payment paid automatically to those entitled to the benefit in February 2024. The first instalment was paid from 25 April 2023, and the second from the end of October the same year.
The support was originally announced in the 2022 Autumn Statement and is aimed at helping people struggling with the cost of living crisis as essential costs such as food and energy continue to soar. According to government figures, around eight million who receive means-tested benefits will be entitled to the grant.
The £900 payments followed a £650 grant for people in receipt of means-tested benefits that was paid in two instalments in 2022.
Get your free no-obligation pension consultation
If you’re considering getting professional financial advice, Fidelius is offering Rest Less members a free pension consultation. It’s a chance to have an independent financial advisor give an unbiased assessment of your retirement savings. Fidelius is rated 4.7/5 from over 1,000 reviews on VouchedFor. Capital at risk.
Who qualified for the £900 cost of living payments?
You should have been eligible for the £900 cost of living payments if you were receiving one or more of the following benefits: Universal Credit; income-based Jobseeker’s Allowance; income-related Employment and Support Allowance; income support; Pension Credit; Working Tax Credit, and Child Tax Credit.
Similarly to the previous £650 cost-of-living payments in 2022, the payments were a tax-free grant, and so didn’t affect existing benefits.
When should the £900 cost of living payments have been received?
The cost of living payments were spread out to ensure that financial support is received throughout the year for the households who need it most.
The first payment should have been received by 17 May 2023 for people on DWP benefits, or between 2 and 9 May 2023 for people on tax credits, meaning all those eligible should now have received the first payment. The second payment, of £300, should have been paid by 19 November, and the third £299 payment was made in February 2024.
A spokesman for the DWP said: “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,” You may still be able to receive the last cost of living payment (paid in February for most people) if you apply for Pension Credit now.
Find out more about Pension Credit in our guides Pension Credit: are you missing out on £3,500 a year? And Pension Credit explained.
What other cost of living support is available?
The government paid a separate £150 disability cost of living payment in summer 2023. This was paid to anyone in receipt of the following benefits: Disability Living Allowance; Personal Independence Payment (PIP); Attendance Allowance: Scottish Disability Benefits; Armed Forces Independence Payment; Constant Attendance Allowance; War Pension Mobility Supplement.
If you’re entitled to Winter Fuel Payment, you’ll get an extra £300 Pensioner Cost of Living payment in the winter of 2023/24. This is on top of between £100 and £300 towards energy bills from the Winter Fuel Payment. The amount you receive depends on when you were born, your living situation and benefits entitlement. You should receive this extra payment automatically if you’re entitled to it. Find out more in our article Pensioners to receive up to £600 towards energy bills and Winter Fuel Payment: who gets it and when is it paid?
It’s also worth checking with your local authority whether you might be entitled to any help from the Household Support Fund. Launched in October 2021 to help those struggling financially in the wake of the pandemic, the aim of the fund was originally to provide households in need with small grants to cover essential living costs such as food, clothing and utility bills.
With the ongoing cost of living crisis, the fund has now been extended four times. In October it was extended until March 2024, but has now been extended further to September 2024. You can find out more about the scheme and how to submit a claim in our guide The Household Support Fund explained. Myron Jobson, senior personal finance analyst at Interactive Investor, said: “The various cost-of-living support schemes and measures past and present have and will help to ease the inflationary crunch on budgets – but most have a shelf life.
“It remains important to have a comprehensive understanding of your financial position and make the necessary adjustments to ensure that your financial position holds strong long after the cost-of-living measures expire.”
Find out more about financial support you might be entitled to in our article 25 sources of support if you receive benefits or are on a low income.
Rest Less Money is on Instagram. Check out our account and give us a follow @rest_less_uk_money for all the latest Money News, updated daily.
Harriet Meyer is an award-winning freelance financial journalist with more than 20 years' experience writing about personal finance for broadsheet newspapers, consumer websites and magazines. Previously, she worked as editor of The Observer's 'Cash' section, and was part of The Daily Telegraph's Money team. She's also worked as a BBC producer on radio money shows such as Wake Up to Money. Harriet lives in South West London with her partner, and giant cat. She enjoys yoga and exploring the world in her spare time.
* Links with an * by them are affiliate links which help Rest Less stay free to use as they can result in a payment or benefit to us. You can read more on how we make money here.
Thinking of Investing in Tax-Free Gold?
Speak with The Royal Mint’s wealth management team today and discover how you could diversify your investment portfolio, hedge against inflation, and secure your family’s future with tax-free gold.