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Almost eight million UK families will receive the second cost of living payment as of 8 November 2022. This second payment of £324 will automatically be paid out with no need for anyone to apply.
We review what the cost of living payment is, how it works, and when you can expect it.
The cost of living support package was created to help people cope with the rise in living expenses. The support package includes one-time payments to pensioners, claimants with disabilities, and recipients of income-related benefits.
To apply, there is nothing you need to do. If you are qualified (or later determined to be qualified), you will immediately receive payment in the same manner as other benefit payments or tax credits.
You will receive these additional payments in addition to your regular payments in a separate account. They are not taxable and have no impact on the advantages or tax breaks you receive.
The government's $1,200 support package includes £400 for energy bills, which will be distributed to all household energy consumers between now and March 2023 in monthly instalments.
It includes the prior £326 cost of living payment paid by the Department of Work and Pension (DWP) in July and the HMRC in September and the £150 Council Tax Rebate for 85% of all UK households.
In addition to this, almost one in every ten people got a disability payment of £150 in September and a £300 winter fuel payment will additionally go to millions of pensioners.
The £1,200 package and the £324 payments come on top of a range of other support means from the government to assist with the cost of living this winter.
The Energy Price Guarantee will also ensure that people across the UK will pay a lot less on their energy bills with a typical saving of around £700 per household this winter.
The second Cost Of Living payment for DWP claimants will be made by 23 November 2022, and the payment for eligible claimants not receiving any additional means-tested benefits will be made between 23-30 November 2022.
People eligible to receive the second cost of living payment include those on:
Income Support
Pension Credit
Income-related Employment and Support Allowance (ESA)
Income-based Jobseekers Allowance (JSA)
Universal Credit
With the exception of retired families, who may be able to have a new Pension Credit claim backdated, applicants must have been receiving payment between 26 August and 25 September 2022.
If you do not qualify for the DWP benefit could still get the £324 payment. This is because HMRC will also make payments to people who receive Child Tax Credit or Working Tax Credit and no other eligible benefits.
People who are not eligible to receive the second Cost of Living payment include those who get the following benefits only:
Incapacity Benefit
Carers Allowance
Industrial Injuries Disablement Benefit
Employment and Support Allowance unless you also get a disability living allowance or Universal Credit
Jobseeker's Allowance unless you also get a disability living allowance or Universal Credit
However, it's important to note that some lenders may offer loans for people on benefits, which could provide an alternative financial solution for those ineligible for the Cost of Living payment.
If you haven't received your £326 payment but should have, you can report a missing Cost of Living payment immediately to your payment office.
If you haven't received your £150 Disability Cost of Living payment, you can report this as well. Be sure to check your bank accounts or credit union account.
Keep in mind that there are scams doing the rounds so if you get a strange text or email from the DWP or GOV.UK requesting your bank details, report it immediately.
Here are a few helpful resources available:
Benefits Calculator to check your benefits
Make the Call will ensure you're getting all your benefits
Finance Support Service can provide support to those in need of short-term financial help
For information and support to aide you in achieving your financial goals, Money Helper is a free service set up by the Government to help people make the most of their money. Click here if you would like to learn more about Money Helper and their services
.
