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Millions of UK households receiving government cash payments to help with cost of living

Home> News

Published 11:01 3 Jan 2023 GMT

Millions of UK households receiving government cash payments to help with cost of living

Eight million households will receive a payment of £900 from the spring

Lucy Devine

Lucy Devine

Millions of UK households are set to receive a new cost of living payment from the government.

Eight million low income households will receive the payment of £900 from the spring, supporting those on universal credit, pension credit and tax credits.

The payment will be split into three £300 instalments starting in the spring and will be paid into bank accounts over the course of the financial year.

There will also be a separate £150 for over six million disabled people and £300 for over eight million pensioners - this is on top of their winter fuel payments.

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Millions of UK households are set to receive a new cost of living payment from the government.
designer491/Alamy Stock Photo

Work and Pensions Secretary Mel Stride said: "We are sticking by our promise to protect the most vulnerable and these payments, worth hundreds of pounds, will provide vital support next year for those on the lowest incomes.

"The government’s wider support package has already helped more than eight million families as we continue to deal with the global consequences of Putin’s illegal war and the aftershocks of the pandemic."

Meanwhile, Chancellor of the Exchequer Jeremy Hunt added: "I know these are tough times for families across the UK who are struggling to meet rising food and energy costs, driven by the aftershocks of Covid and Putin’s war in Ukraine.

Eight million low income households will receive the payment of £900 from the spring.
Rosemary Roberts/Alamy Stock Photo

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"That’s why we’re putting a further £900 into the pockets of over 8 million low income households next year.

"These payments are on top of above inflation increases to working-age benefits and the Energy Price Guarantee, which is insulating millions from even higher global gas prices.

"Tackling inflation is this government’s number one priority and is the only way to ease the strain of high prices, drive long term economic growth and improve living standards for everyone."

The new payment is on top of measures announced last year, which include a £650 Cost of Living payment for means-tested households; a £150 Council Tax rebate for those in bands A-D and a £400 energy bill discount for all households.

Households across the UK are struggling with rising bills.
Maskot/Alamy Stock Photo

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You can find more information on the separate payments here.

Although the payments aim to help keep low income households afloat amid rising inflation and sky high energy costs, there is still apprehension about how families will be able to cover their electricity and gas bills throughout the winter.

In October, money saving expert Martin Lewis explained: "The energy crisis has been disastrous and left many people with terrible issues and mental health problems.

"I'm afraid next year with the mortgage problem and the knock on to rent is going to be pretty bad."

Featured Image Credit: Aleksandr Davydov/PearlBucknall/Alamy Stock Photo

Topics: UK News, Money, Politics

Lucy Devine
Lucy Devine

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