Who is eligible for the new cost of living payout in the UK?

Millions of people in the UK are now receiving the next round of payments to help them with rising household bills as a committee of MPs investigates the fairness of the scheme.

The payments are part of a cost-of-living fund extension to help low-income households, pensioners, and disabled people.

Depending on the recipient’s eligibility criteria, the cost-of-living payments will come in different forms and amounts.

Households on means-tested benefits will receive a total of £900 in three installments in the spring, autumn, and spring of 2024.

On the other hand, pensioner households will receive £300 in the winter, while people on certain disability benefits will get £150 in the summer.

To receive the first installment of £301, eligible people on means-tested benefits will receive it between 25 April and 17 May.

People who receive only tax credits may be paid slightly later than others, starting on 2 May.

However, those who receive New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker’s Allowance are not eligible for these payments unless they get Universal Credit.

To qualify for the next installment, people had to have claimed a benefits payment between 26 January and 25 February 2023 or received a payment for an assessment period ending between these dates.

Pensioner households may be able to have a new pension credit claim backdated.

An estimated 850,000 pensioner households do not claim pension credit, which is a gateway to these extra payments.

To receive the payments, recipients must have claimed a benefit or received a payment for an assessment period.

The cost-of-living payments do not affect the tax you pay or the benefits or tax credits you receive.

However, if you think you should have received the help but did not, you should contact the office that pays your benefit or tax credits or report it to the relevant authorities.

Two payments totaling £650 have already been made to more than eight million low-income households.

The first installment of £326 was paid between 14 and 31 July, while the second installment of £324 should have reached those eligible by the end of December.

In addition to the cost-of-living payments, everyone’s energy bill was cut by at least £400 during the last winter.

This was applied over six months, with a £66 reduction in October and November and a £67 discount every month between December and March.

Energy suppliers in England, Scotland, and Wales automatically applied the discount.

For households in Northern Ireland, which has its own energy market, they received a single payment of £600 starting in January.

This amount is higher than the rest of the UK because many households in Northern Ireland use heating oil.

Direct debit customers in Northern Ireland have the money paid into their bank accounts, while other customers will be sent a voucher.

Disabled people on certain disability benefits will receive another £150 later in the year.

Up to six million people on Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Scottish Disability Payments, Armed Forces Independence Payment, Constant Attendance Allowance, and War Pension Mobility Supplement are eligible for this additional support.

MPs are studying whether the design of the payment system has supported those most in need.

They are investigating whether the system is fair to all eligible recipients and whether the payments reach those who most need them.

The investigation aims to ensure that the scheme does its intended job of helping low-income households, pensioners, and disabled people.