DWP announces new cost of living payment - and thousands will benefit

The Department for Work and Pensions has unveiled details about who is eligible for a new round of summer cost of living payments. Thousands are set to benefit from financial aid between now and the end of September, thanks to the six-month extension of the Household Support Fund.

The amount available depends on how each local authority decides to use its allocation. The DWP is providing data and information to authorities to help identify those in need within their communities, reports Chronicle Live.

This includes Universal Credit claimants with limited work capability or earnings below the thresholds for free school meals and prescriptions. It also includes recipients of the Guarantee Credit and/or Savings Credit elements of Pension Credit, those on income-related Employment and Support Allowance (ESA), and individuals who only receive Housing Benefit.

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The Department for Work and Pensions (DWP) has stressed that assistance is not solely restricted to vulnerable households receiving benefits. It encourages local councils to utilise other sources of information in identifying individuals who qualify for extra aid.

This includes suggestions or referrals from professionals like social workers, early help key workers and family support, health visitors, and housing support officers.

Officials have emphasised that the Household Support Fund is designed to aid a wide range of low-income households in need. This includes families with children of all ages, pensioners, unpaid carers, individuals leaving care and disabled people, larger families, single-person households, as well as those dealing with "one-off financial shocks or unforeseen events."

The department is urging local councils to consider the needs of disabled individuals who are struggling to manage their conditions, maintain independence and prevent social isolation. Some are facing high gas and electricity bills due to the energy required to power equipment essential for their medical conditions, while others have higher water or transportation costs.

Authorities are being "strongly encouraged" to explore ways this group can be supported. They are also required to record the total amount of financial awards given to disabled individuals so the DWP can monitor how the funds have been used.

The DWP underscored the importance of factoring in care leavers and individuals with caring roles in their new support initiatives, stating: "Care leavers can face particular barriers as they leave the care system and begin to live independently. For example, care leavers may not have access to the same familial networks as others and will not have the same financial, emotional or social support systems that enable them to live independently, respond to crisis or avoid becoming socially isolated."

The DWP also highlighted the necessity of providing assistance to those with caregiver obligations: "Authorities should also consider supporting people with caring responsibilities in their area. They may have additional heating, water or transport costs."