[UK] The new cost of living payment: how much are you entitled to?

In October, British households will receive a £400 grant to help ease the cost of soaring energy bills and Chancellor Rishi Sunak has announced a significant increase in support for vulnerable households and the elderly, The Telegraph reports.

Families are struggling with the impact of the greatest cost of living crisis for a generation and the majority of households will receive further support with measures from yesterday's announcement, Mr Sunak said.

The elderly, disabled, and low-income households will receive targeted support and pensioners will see a boost in their winter fuel payment later this year. Other families will receive further support with paying sky-high energy bills.

How will the £400 energy grant be paid?

Earlier this year the Chancellor announced a £200 discount on energy bills applied in October for all bill payers but households would eventually need to pay this back starting from 2023. He also said some households would receive a £150 council tax rebate that would not need to be repaid.

However, yesterday it was announced that no household would have to pay back the original £200 discount and the rebate was doubled to £400.

Bill payers will not need to contact their energy company as the grant will be automatically applied to every household bill in October. 

Pensioners’ £300 top-up

In the autumn, more than eight million pensioners who receive the winter fuel allowance will be paid a one-off "pensioner cost-of-living" payment of £300. The Chancellor said the elderly often incur higher energy bills as they spend more time at home and keep their heating on for longer.

The payment will be made directly to households in the same way they receive the winter fuel allowance.

Combined with an additional discount on energy bills, pensioners are at least £500 better off following the announcement yesterday. They could receive a total of £850 in support this year, assuming they qualified for the council tax rebate announced earlier in 2022.

Who qualifies for the £650 cost of living payment?

More than eight million homes that currently receive state benefits will be paid a one-off "cost of living" grant of £650. Households will not have to fill out any forms, and the payment will go directly into their bank accounts split between July and the autumn.

Meanwhile, six million people on disability allowance will receive a one-off payment of £150 in September, which the Chancellor said would help offset the extra electricity many disabled people use on energy-intensive equipment in the home.

These direct cash payments will help one-third of households and cost the Government £9bn. In total, vulnerable and low-income households will receive £1,200 in additional state support this year.

Why now? 

Earlier this week, the energy regulator, Ofgem, announced Britain's energy price cap would rise to around £2,800 in October, meaning households will pay 42 per cent, or around £830, more than they do now.

This will pile more pressure on already struggling households and comes alongside an inflation rate of 9 per cent and higher taxes since last month.

Source: The Telegraph

(Links and quotes via original reporting)

In October, British households will receive a £400 grant to help ease the cost of soaring energy bills and Chancellor Rishi Sunak has announced a significant increase in support for vulnerable households and the elderly, The Telegraph reports.

Families are struggling with the impact of the greatest cost of living crisis for a generation and the majority of households will receive further support with measures from yesterday's announcement, Mr Sunak said.

The elderly, disabled, and low-income households will receive targeted support and pensioners will see a boost in their winter fuel payment later this year. Other families will receive further support with paying sky-high energy bills.

How will the £400 energy grant be paid?

Earlier this year the Chancellor announced a £200 discount on energy bills applied in October for all bill payers but households would eventually need to pay this back starting from 2023. He also said some households would receive a £150 council tax rebate that would not need to be repaid.

However, yesterday it was announced that no household would have to pay back the original £200 discount and the rebate was doubled to £400.

Bill payers will not need to contact their energy company as the grant will be automatically applied to every household bill in October. 

Pensioners’ £300 top-up

In the autumn, more than eight million pensioners who receive the winter fuel allowance will be paid a one-off "pensioner cost-of-living" payment of £300. The Chancellor said the elderly often incur higher energy bills as they spend more time at home and keep their heating on for longer.

The payment will be made directly to households in the same way they receive the winter fuel allowance.

Combined with an additional discount on energy bills, pensioners are at least £500 better off following the announcement yesterday. They could receive a total of £850 in support this year, assuming they qualified for the council tax rebate announced earlier in 2022.

Who qualifies for the £650 cost of living payment?

More than eight million homes that currently receive state benefits will be paid a one-off "cost of living" grant of £650. Households will not have to fill out any forms, and the payment will go directly into their bank accounts split between July and the autumn.

Meanwhile, six million people on disability allowance will receive a one-off payment of £150 in September, which the Chancellor said would help offset the extra electricity many disabled people use on energy-intensive equipment in the home.

These direct cash payments will help one-third of households and cost the Government £9bn. In total, vulnerable and low-income households will receive £1,200 in additional state support this year.

Why now? 

Earlier this week, the energy regulator, Ofgem, announced Britain's energy price cap would rise to around £2,800 in October, meaning households will pay 42 per cent, or around £830, more than they do now.

This will pile more pressure on already struggling households and comes alongside an inflation rate of 9 per cent and higher taxes since last month.

Source: The Telegraph

(Links and quotes via original reporting)