Who is eligible for the £900 cost of living payments, how to claim and when will it be paid?

Who is eligible for the £900 cost of living payments, how to claim and when will it be paid?

Chancellor Jeremy Hunt announced in his Autumn Statement that vulnerable households would receive an extra £900 help amid the cost of living crisis.

Pensioners and people receiving disability benefits will also receive additional support in the coming months, too.

Mr Hunt said in his statement on Thursday: “For the most vulnerable, we will introduce additional cost of living payments next year, of £900 to households on means-tested benefits; £300 to pensioner households; and £150 for individuals on disability benefit.

“We will also provide an additional £1 billion of funding to enable a further 12-month extension to the Household Support Fund, helping local authorities to assist those who might otherwise fall through the cracks.”

The Government’s cost of living support package is worth £26 billion in 2023-2024. Furthermore, the benefits uprating is worth £11 billion to working-age households and people with disabilities.

Find out below who is eligible for the £900 payment and when they can expect to receive the money.

Who is eligible for the £900 cost of living payments?

More than eight million households in the UK on means-tested benefits will receive £900 from the government in 2023-2024.

People receiving the following benefits will be eligible:

  • Universal Credit

  • Income-based Jobseeker’s Allowance

  • Income-related Employment and Support Allowance

  • Income Support

  • Pension Credit

  • Working Tax Credit

  • Child Tax Credit

Meanwhile, pensioners will receive an extra £300 and people receiving non-means-tested disability benefits will receive an extra £150.

When will the £900 cost of living payments be made?

The £900 payment will be made in more than one installment, but the Department for Work and Pensions (DWP) and HMRC are yet to announce when the payments will be made.

The Government has confirmed that the £900 will be tax-free and will not count towards the benefit cap. It also will not affect existing benefit awards.

How to claim the £900 payment

Like the earlier cost of living payments, the £900 will likely be paid automatically to eligible households.

The Government’s cost of living payment guidance, which was most recently updated on November 8, says: “If you’re eligible, you’ll be paid automatically in the same way you usually get your benefit or tax credits.

“This includes if you’re found to be eligible for a Cost of Living Payment or a Disability Cost of Living Payment at a later date.”

More information can be found from the UK government website.