Millions of people across the UK have benefited from financial support from the government this year to help with rising living costs.
Over the course of this financial year the Department for Work and Pensions (DWP) has been issuing Cost of Living Payments to eligible households, with the three payments worth up to £900 in total.
The first instalment of £301 was made in April and May this year, followed by a second £300 payment in October and November. The third and final instalment of £299 is due to be paid in spring 2024, although an exact date is yet to be confirmed by the DWP.
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The government said the extra cash is to support low-income families on means-tested benefits with financial pressures, as households struggle to cope with soaring living costs.
Questions have been raised as to whether the Cost of Living Payments will be extended further into the 2024/25 financial year, but the spring payment looks set to be the last free handout from the government.
Chancellor Jeremy Hunt made no reference to any further financial support in his Autumn Statement last month and DWP Minister for Social Mobility, Youth and Progression, Mims Davies MP later indicated there are “currently no plans” to extend the payments beyond spring 2024.
In response to a question from Labour MP Sir George Howarth as to whether the spring deadline will be the final Cost of Living payment, Ms Davies said in a written statement: “There are currently no plans to extend the cost of living payments beyond the spring. Cost of living payments enabled us to target further support during the rising cost of living pressures.
“Delivering lump sum payments got support faster to those who needed it, reflecting our commitment to providing direct and timely relief to those who need it most. The rate of inflation has slowed, and we have been able to implement uprating to other benefits in the meantime to reflect increased costs.
“This includes increasing benefits and the State Pension by 10.1% in April 2023 in line with inflation. The Secretary of State has completed his annual statutory review of pensions and benefits and his decisions were announced to Parliament on November 22. From April 2024, Universal Credit amounts will be up-rated by 6.7%.”
As such, it means that the £299 spring payment looks set to be the last free handout from the government and will be paid to people who receive the following benefits:
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Universal Credit
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Income-based Jobseeker’s Allowance
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Income-based Employment Support Allowance
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Income Support
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Pension Credit
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Tax credits (Child Tax Credit and Working Tax Credit) and no other low income benefit
The qualifying dates for the payment are yet to be announced by the DWP, but you will not be eligible if your benefit is reduced to £0 for the qualifying period. Reasons your benefit may be reduced to £0 include:
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you got more than one payment of earnings in your Universal Credit assessment period
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your or your partner’s earnings went up
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your or your partner’s savings went up
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you started getting another benefit
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you got a ‘sanction’ because you did not do something you agreed in your claimant commitment
You may still be eligible for a Cost of Living Payment if your benefit is reduced to £0 and one of the following applies:
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money was taken off your benefit for other reasons, such as payments of rent to your landlord or for money that you owe
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you had a hardship payment because you could not pay for rent, heating, food or hygiene needs
For those who get tax credits, you won’t be eligible for the payment if your tax credits entitlement for the tax year is below £26.
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