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Cost of living payments: a simple guide

All information in this article was correct at the time of publishing. For continuous up-to-date information, go to the Government’s website here.

We know that there’s a lot of confusion around the cost of living crisis, energy bills and what payments people are entitled to, so our Housing and Income Services Manager, Katherine Goodwin, has created a simple guide to what you’re entitled to.

The cost of living crisis is going to affect most of us this winter, one way or another. The constant news stories and headlines can be scary but we want to let you know what money is available and what you’re entitled to.


For every household

From October, every household will start receiving £400 off their energy bills – this will be made in 6 instalments throughout the winter. These payments do not need to be re-paid.

Those who pay their bills via standard credit, payment card or direct debit will receive an automatic deduction off their bills from October 2022 to March 2023.

Those who have a prepay meter will get Energy Bill discount vouchers sent either via text, email or post. You’ll need to take these with you to your local PayPoint or Post Office when topping-up your meter.

You will see a discount of £66 applied to your energy bills in October and November, rising to £67 each month from December to March 2023 – totalling to £400.


For those on benefits

You may be able to get a payment to help with the cost of living if you’re getting certain benefits or tax credits.

You could get up to 3 different types of payments depending on your circumstances on a particular date or during a particular period:

  • A Cost of Living Payment, if you get a qualifying low income benefit of tax credits
  • A Disability Cost of Living Payment, if you get a qualifying benefit
  • A Pensioner Cost of Living Payment, if you’re entitled to a Winter Fuel Payment for winter 2022 to 2023.


Low income benefits and tax credits

You may get a payment of £650 paid in 2 jump instalments of £326 and £324 if you get payments of any of the following:

  • Universal Credit
  • Income-based Jobseeker’s Allowance (JSA)
  • Income-based Employment and Support Allowance (ESA)
  • Income Support
  • Pension Credit
  • Child Tax Credit
  • Working Tax Credit

If you’re eligible, you would probably have received your first payment with the second payment due in Autumn or Winter.

There are conditions to these payments and you can read more about these here.


Disability Cost of Living Payment

You may get a lump sum payment of £150 if you’re getting any of the following:

  • Attendance Allowance
  • Constant Attendance Allowance
  • Disability Living Allowance for adults
  • Disability Living Allowance for children
  • Personal Independence Payment
  • Adult Disability Payment (in Scotland)
  • Child Disability Payment (in Scotland)
  • Armed Forces Independence Payment
  • War Pension Mobility Supplement

You must have received a payment (or later receive a payment) of one of these qualifying benefits for 25 May 2022 to get the payment.

You’ll be paid this automatically from 20 September 2022 – most people will receive their payment by the beginning of October 2022.


Pensioner Cost of Living Payment

If you’re entitled to a Winter Fuel Payment for winter 2022 to 2023, you will get an extra £300 for your household paid with your normal payment from November 2022. This is in addition to any Cost of Living Payment you get with your benefit or tax credits.

The full amount of Winter Fuel Payment you will get for winter 2022 to 2023 depends on your circumstances. These amounts are for winter 2022 to 2023 only.

You can find more information here.

We have put together some information and tools to help you with the rise in cost of living and you can find this here.