Cost of Living – What can you claim?
It's been a tough two and a half years and we're aware that the winter months have brought even greater challenges for many. We would like to remind residents that we remain sensitive to how the economic climate has impacted many of you and we encourage those who are struggling to get in touch with Jane, our Welfare and Debt Advice Officer, on 020 8633 8767 or 07384 255 630 or email janew@ccha.biz.
Please note that the information in this article is accurate as of December 2022 and further support may be available to some people as energy bills are set to rise again substantially from April 2023 – we will keep you updated via our website.
Below are a range of resources that we encourage residents to take advantage of during this season.
Cost of Living Payments - £650 in total
If you receive certain benefits such as Pension Credit, Income-related Jobseeker’s Allowance, Income-related Employment and Support Allowance, Universal Credit or Tax Credits, you should have received two Cost of Living Payments, from either the DWP or HMRC.
The first payments of £326 were made in Summer 2022 for those who received qualifying benefits between 25th April 2022 and 26th May 2022.
The second payment of £324 was paid directly into bank accounts between 8th and 23rd November unless you received Tax Credits only – in which case you should have received the payment by the end of November 2022. The payments showed as ‘DWP COL’ or ‘HMRC COL’ on your bank statement.
If you haven’t received either payment and think you qualify, it’s not too late - you can report a ‘missing Cost of Living payment’ online.
In the Chancellor’s Autumn Budget, the government confirmed that in 2023-24, an additional Cost of Living Payment of £900 will be provided to households on means-tested benefits.
Get in touch with Jane our Welfare and Debt Advice Officer, on 020 8633 8767 or 07384 255 630 or email janew@ccha.biz.
What is the Government doing to help?
Central government and local councils have several schemes in place to help. The Chancellor recently announced the following initiatives to support low income and vulnerable individuals and households:
£150
An extra £150 for disabled people
If you or a family member receive a disability benefit such as Personal Independence Payment, Attendance Allowance or Disability Living Allowance, you should have received a one-off ‘extra’ payment of £150 into the same bank account that you are paid your benefit.
In the Chancellor’s Autumn Budget, the government confirmed that in 2023-24, an additional payment of £150 will be provided to individuals on disability benefits.
£300
Additional £300 for pensioner households
If you normally receive a Winter Fuel Payment or have recently reached State Pension Age, you should receive an additional payment of between £150 - £300 sometime before 13th January 2023. The amount you receive is based on your circumstances and when you were born. This applies to almost all people of State Pension Age, regardless of income or benefits.
In the Chancellor’s Autumn Budget, the government confirmed that in 2023-24, an additional payment of £300 will be provided to pensioner households.
£400
£400 energy grant for everyone
The government's Energy Price Guarantee limits the amount you can be charged per unit of gas or electricity until the end of March 2023. This means that our standing charges and cost per unit of energy has been ‘frozen’ for the next few months. However, this does not mean that energy bills cannot increase. It’s just the cost per unit of energy which is capped, meaning the more energy you use, the more you pay.
The £400 grant has been split into payments of £66 in October and November, rising to £67 per month from December until March 2023. Those with a domestic electricity meter point who make payments through payment cards, standard credit and direct debit will receive an automatic deduction on their bill or have the money credited to their account.
Energy providers such as Bulb, E.ON and Octopus Energy are automatically crediting the amount to their customers’ accounts, so the bill amount is reduced.
However, companies such as British Gas, EDF, SSE and Ovo Energy are among a handful of companies charging customers their usual amount via direct debit and then crediting the grant amount into their bank account.
Those who use pre-payment meters and top up their credit before using energy will be provided with discount vouchers in the first week of each month. It is worth contacting your energy provider to confirm how they are handling this process.
From April 2023, the Energy Price Guarantee will raise to £3000. This will equate to an average of £500 support for households in 2023-24.
What other support might be available?
Warm Home Discount
The Warm Home Discount is money off your electricity or gas bills. This year, you cannot apply for the discount; you will be contacted by your energy supplier if you qualify. There are 2 main groups of people who will be considered for the scheme:
- Pensioners who receive Pension Credit.
- People on certain means-tested benefits such as ESA, JSA and Universal Credit.
If you are eligible, you would have received a letter before the end of December 2022.
Residents who are of State Pension Age and over
Eligibility rules can be quite complex, but as a basic rule, if you are aged 66 and over and your total weekly income is less than £200, you may be eligible for Pension Credit. Get online or call the pension credit helpline to see if you're eligible. If you require assistance, contact our Welfare and Debt Advice Officer.
Residents should note that pensions will increase in line with inflation and have already increased by 10.1% and the pension triple lock will remain.
Wages and benefits
The government announced that from April 2023, the National Living Wage and the National Minimum Wage will rise. The National Living Wage will increase from £9.50 to £10.42 per hour, for those aged 23 and over.
Similarly, benefits will rise with inflation by 10.1% and the benefit cap will also increase in line with inflation.