Let’s face it—times are tough. Even though inflation has come down a bit recently, the cost of living in the UK is still a daily challenge for millions of households. From rising energy bills to expensive groceries, making ends meet has become harder than ever, especially for families with limited income or those relying on government benefits.
If you’re feeling the pressure, you’re not alone. The good news is that the UK government has stepped in with a range of cost of living support payments aimed at helping low-income individuals and families stay afloat during this crisis. Whether you’re on Universal Credit, a pensioner, or receiving disability benefits, there’s a good chance some financial help is already on its way—or may already be in your bank account.
In this comprehensive guide, we’ll break down who qualifies for the payments, how much you can get, when to expect them, and what to watch out for to avoid scams. So, let’s dive in.
What Is the Cost of Living Payment Scheme?
To help people cope with the rising cost of basic needs—like food, housing, energy, and transport—the UK government announced a series of cost of living support payments. These payments are non-taxable, do not affect existing benefits, and are made automatically to those who qualify.
In total, around eight million households across the UK are eligible to receive these payments. The full scheme includes:
- Three cost of living payments totaling £900
- A £150 disability support payment
- An extra pensioner payment on top of the usual Winter Fuel Payment
Let’s go over each of these in more detail.
Cost of Living Support Payments (£301 + £300 + £299)
These are the main three payments that form the heart of the government’s support package.
How Much and When?
Eligible households will receive the following three payments:
- £301 – Paid in spring 2023
- £300 – Paid from 31 October 2023
- £299 – Final payment issued from 16 February 2024
Each of these payments is aimed at helping people with rising living costs throughout the year—especially during colder months when heating bills rise.
Who Qualifies?
You’re eligible for these payments if you receive any of the following income-related benefits:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
Importantly, you don’t need to apply for these payments. If you qualify, the payments will be sent automatically to your account—the same way you normally receive your benefits. For most people, that means the payment will come directly from the Department for Work and Pensions (DWP). However, if you’re only receiving tax credits, your payment will come from HM Revenue and Customs (HMRC) instead.
How Will You Get the Payment?
If you’re eligible, the money will be deposited directly into your bank account, Post Office account, or other preferred benefit payment method—whichever one you already use.
There’s no separate application or form to fill out. The process is designed to be automatic to prevent delays or confusion. However, always double-check that your benefit details are up-to-date to avoid missed payments.
Disability Cost of Living Payment (£150)
For individuals living with disabilities, an additional £150 one-off payment was issued between 20 June and 4 July 2023. This payment was meant to assist with increased costs such as medical care, mobility support, and everyday essentials.
Who Was Eligible?
You could qualify for this £150 payment if you received one of the following disability benefits:
- Attendance Allowance
- Disability Living Allowance (DLA) – adults or children
- Personal Independence Payment (PIP)
- Constant Attendance Allowance
- Armed Forces Independence Payment
- War Pension Mobility Supplement
- Adult or Child Disability Payment (if living in Scotland)
Again, the payment was made automatically, and recipients did not need to apply. It was intended to ease the financial burden on individuals who already face higher living costs due to disability-related needs.
Winter Fuel Payment + Pensioner Cost of Living Suppor
Winter brings with it more than just chilly temperatures—it also brings much higher heating bills. To help with this, the government provides a Winter Fuel Payment, with an extra pensioner cost of living top-up for those who qualify.
Who Qualifies?
This payment is for people who were born before 26 September 1956. Eligible individuals would have automatically received their Winter Fuel Payment during November or December 2023.
On top of this regular support, pensioners received an additional £150 or £300 as part of the cost of living top-up—again, this was included with the Winter Fuel Payment and sent automatically.
How Much Do You Get?
The total amount you receive depends on:
- Your age
- Your household situation (e.g., living alone, living with another pensioner, living in a care home)
- Whether you receive certain benefits
The government website provides a Winter Fuel Payment calculator, which can help estimate the amount you’re entitled to.
Why You Might Not Get a Payment
Even if you’re receiving benefits, there are certain situations where you may not qualify for these cost of living payments. One common issue is something known as a “nil award.”
A nil award happens when your benefit payment is reduced to £0 for a given assessment period. This can happen for several reasons:
- You received a bonus or extra wages in that period
- Your or your partner’s earnings went up
- You started receiving another benefit
- Your savings increased
- You were sanctioned for not meeting a condition in your claimant commitment
If any of these apply during the qualifying period, you may miss out on the cost of living payment.
However, there are exceptions.
You may still qualify even if your benefit was reduced to £0, if:
- Your benefit was reduced because of repayments, such as rent paid to your landlord or deductions for past overpayments
- You received a hardship payment because you couldn’t afford essentials like rent, food, or heating
Watch Out for Scams: What You Need to Kno
Unfortunately, whenever there’s financial aid on the table, scammers are quick to take advantage.
In 2022, around 40 million UK residents were targeted by scammers who used the cost of living crisis as bait. Citizens Advice reported seeing a spike in scams where fraudsters pretended to be from Ofgem, the DWP, or HMRC.
One common trick involved emails or texts that said you needed to provide your bank details to claim your £400 energy rebate or other payments. These were completely fake.
How to Stay Safe
- Do not click on links in suspicious emails or texts
- Never give out your bank details or passwords via email or text
- If in doubt, go directly to the government website or contact Citizens Advice
- Remember: All official cost of living payments are automatic. You do not need to apply or provide any personal info to receive them.
Final Thoughts:
The cost of living crisis is real and ongoing, but the UK government has rolled out multiple support schemes to help households get through these challenging times. From the £900 main support package to extra help for disabled individuals and pensioners, there are lifelines available for many.
However, staying informed is key. Keep track of your benefit status, double-check payment dates, and make sure you’re not falling victim to scams.
If you think you should have received a payment but didn’t, visit the UK government’s official benefits website for the most up-to-date information or reach out to your local Jobcentre Plus, Citizens Advice, or HMRC office.
FAQs
1. What are the cost of living payments in 2024?
Cost of living payments are financial support provided by the UK government to help low-income households manage rising expenses in 2024, especially for essentials like food, energy, and rent.
2. Who is eligible to receive cost of living payments in 2024?
People receiving means-tested benefits such as Universal Credit, Pension Credit, Income Support, or Tax Credits may qualify. Some disability and pensioner households also get separate payments.
3. How much will I receive as a cost of living payment in 2024?
The amount varies based on benefit type. For example, means-tested benefit recipients may get up to £900 split over multiple installments, while eligible disabled individuals may receive around £150.
4. What are the payment dates for cost of living support in 2024?
Payments are usually made in several rounds. Exact dates are announced by the DWP or HMRC, but typically fall in spring, summer, and autumn. Check official updates for confirmed timelines.
5. Do I need to apply for the cost of living payment?
No, eligible recipients are paid automatically based on their benefit status during qualifying periods. There is no separate application process.
