More than eight million households will receive £301 in living expenses from the government from today.
Around one in three homes will get the new payments, which will total £900 this year and target people on means tested benefits.
The money will be deposited directly into bank accounts from the Department for Work and Pensions (DWP) between April 25 and May 17.
British people can easily identify these payments as the reference is the claimant’s National Insurance number followed by ‘DWP COL’.
Warm up: The payments are meant to help with living expenses, especially utility bills
To get the money, applicants must have received payment for one of the following benefits between January 26 and February 25, 2023:
- Universal credit
- Pension credit
- Income-based benefit for job seekers
- Income-related labor and support allowance
- Income support
- Tax credit works
- Child tax credit
Two remaining payments of £299 and £300 will be made later this year, although the government has not yet said when.
However, those who receive tax credits get all their payments a little later.
The first payment of £301 will be made between 2 and 9 May and will be made by HM Revenue and Customs, not DWP.
Those who qualify do not need to request either set of payments.
Assistance with living costs still due in 2023
There are several other government schemes to help with living expenses.
Utility bill capped at £2,500
Utility bills are capped at £2,500 for the average home under the government’s Energy Price Guarantee.
Most homes are stuck paying utility bills at the level of the Ofgem price cap, currently £3,280 a year for average usage.
But in reality, an average household pays £2,500 a year for energy.
This is because the government has actually paid part of our gas and electricity bill thanks to the Energy Price Guarantee.
That £2,500 limit was set to rise to £3,000 a year from April 1, but will now remain at £2,500 for another three months until the end of June.
It will then rise to £3,000 until the end of March 2024.
Cash and vouchers from the Household Support Fund
Households struggling with the cost of living can apply for cash and vouchers from the Household Support Fund.
That’s a £2bn pot of public money distributed by local councils to people in their area.
The scheme is a postcode lottery, as each municipality decides how the money is distributed – and to whom.
Some municipalities issue vouchers, others, for example, in cash.
Local authorities have distributed cash and vouchers worth several hundred pounds per home.
Anyone can apply, but they may have to meet eligibility rules, such as being on a low income.
£150 disability living expenses
More than six million people receiving certain disability benefits will be eligible for a payment of £150 this year, paid automatically.
The government has not yet set an exact date for this, but says it will be in the summer.
Eligible people include those with the following benefits:
- Allowance for living expenses in case of disability
- Personal Independence Payment
- Attendance allowance
- Scottish disability benefits
- Armed Forces Independence Payment
- Constant attendance fee
- Mobility supplement War pension
£300 for pensioners this winter
Pensioners who receive winter fuel payments are also eligible for £150 or £300 as pensioner living expenses payment.
The money is intended to help pay energy bills, which tend to be higher for the elderly as they need warmer homes and may have medical equipment that can be plugged in.
Winter fuel payments are worth up to £600 and are paid to households with someone born before 26 September 1956.
In addition, eligible applicants should automatically receive a cost of living payment of £150 or £300 for pensioners.
£400 for homes without an electricity or gas meter
Around 900,000 households without an electricity or gas meter can apply for £400 under the Energy Bills Support Scheme Alternative Funding.
That includes people in park homes, people living off-grid, and many properties that rely on heating oil.
However, these properties will have to apply to get the money – and maybe not until this winter.
Homes will have to apply for the £400 this government portal or by calling 0808 175 3287.
£200 for those not connected to the mains gas
Households that do not use gas to heat their homes can claim £200 in utility bill assistance from the government.
The Government’s Alternative Fuel Payment Scheme offers payments of £200 to those using fuel oil, liquefied petroleum gas, wood, biomass boilers and other alternative fuels.
Most eligible households get the £200 automatically, as they have a contract with a domestic electricity supplier who can handle the payment.
But homes without a gas connection or electricity supplier will have to apply for the £200 online.
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