When do you get the cost of living payment? Dates for the second instalment of the £650 support
The first instalment was made in the summer, but when do you get the cost of living payment and how much is it?
Wondering when do you get the cost of living payment? The good news is there is not long to wait. On 4 October 2022, the government confirmed that the second cost of living payment will start hitting bank accounts of eligible families in November.
This payment will be the final instalment of the £650 support package pledged by former Chancellor Rishi Sunak for low income families to help them through the cost of living crisis.
Roughly eight million families are eligible for the payment. This follows the £150 council tax rebate that was paid to those in council tax band A-D earlier this year, and comes as the £400 energy rebate also hits bank accounts.
Former Work and Pensions Secretary, Chloe Smith said: "Millions of families will soon see a £324 cash boost as part of our extensive £1,200 support package, helping to raise incomes and manage the rising cost of living.
"We understand that people are struggling which is why and we’re committed to supporting the most vulnerable households. That’s also why we are focused on driving growth and delivering quality public services so we can continue to support those in need through these challenging times while boosting opportunity for all."
When do you get the cost of living payment?
The cost of living payment will be paid from Department of Work and Pensions (DWP) between 8 and 23 November. It will be paid automatically to anyone is eligible so there is no need to apply or do anything in order to receive the payment.
For the one million families who receive tax credits only (and no-other means-tested benefits), they payment will be made from HM Revenue & Customs between 23 and 30 November. This payment comes after the DWP payment to avoid duplication.
GoodtoKnow Newsletter
Parenting advice, hot topics, best buys and family finance tips delivered straight to your inbox.
Former Chancellor of the Exchequer, Kwasi Kwarteng, said: "We know that people have been worried about their bills ahead of this winter, which is why we’ve taken decisive action to hold down energy bills, saving the average household around £1,000 a year, and provided £1,200 of targeted support to the most vulnerable."
How much will I get and who is eligible?
November's instalment of the cost of living payment will be £324. The £650 support package was split into two instalments. The first instalment was £326 and was paid to qualifying families in July.
If you claim Universal Credit, you might be wondering does everyone on Universal Credit get the cost of living payment? But it's not just those who receive Universal Credit who can qualify for the money.
To be eligible for the second payment, you must have have been entitled to a to the following (or later found to be entitled) between 26 August 2022 and 25 September 2022:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income support
- Working Tax Credit
- Child Tax Credit
- Pension Credit.
The payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
What other support could I get?
As well as the second cost of living payment for eligible families, all households that pay for their energy will be entitled to the £400 energy rebate that will be paid in instalments between October 2022 and March 2023. This will see energy bills reduced by £66 each month between October and December and £67 each month between January and March 2023.
On 1 October, the government also introduced the Energy Price Guarantee that aimed to freeze the price you pay per unit of gas and electricity you use for two years. This was introduced to protect families from rising energy prices that could have seen average annual energy bills based on typical use rise to more than £4,500. However, in the aftermath of fallout from Kwasi Kwarteng's mini budget, he was replaced as Chancellor by Jeremy Hunt. Jeremy Hunt then stated that while the Energy Price Guarantee will remain in place, it would only be guaranteed until April 2023. It is not yet known what support will be offered, especially to low-income families, beyond this point if energy prices continue to rise.
Over the winter at least, average annual bills based on typical use will be around £2,500. But remember, this isn't a maximum amount you will pay, this is just an example of an annual bill based on typical use. If you use more energy, you will pay more than £2,500.
If you are struggling to pay your energy bills, help is available. Contact your supplier who can help advise on the best way forward.
Sarah is GoodtoKnow’s Consumer Writer & Money Editor - which means she writes about everything from this year's top toys and the newest toy releases, to discounts on days out and childcare costs. Sarah is passionate about helping mums save money wherever they can - whether that's spending wisely on the right toys and kidswear or keeping on top of the latest news around child benefit, the motherhood penalty. A writer, journalist and editor with more than 15 years' experience, Sarah is all about the latest toy trends and is always on the look out for toys for her nephew or Goddaughters so that she remains one of their favourite grown ups. When not writing about money or best buys, Sarah can be found hanging out with her rockstar dog Pepsi, getting opinionated about a movie or learning British Sign Language.
-
Turn your kids into polyglots this summer
By Heidi Scrimgeour Published
-
50 most popular European baby names revealed - they’re surprisingly traditional and climbing in popularity in the UK
From traditional and classic names to trendy monikers, there's plenty of baby name inspiration to be found in Europe
By Charlie Elizabeth Culverhouse Published
-
Two-child benefit cap: what is it and will it be scrapped?
We look at what the two-child benefit cap is and the likelihood of it being abolished, amid mounting pressure on the Prime Minister to scrap it
By Sarah Handley Published
-
Are you missing out on up to £2,000 a year to help with childcare costs? Here's how to claim it
With 1.3 million parents eligible, and only 500,000 claiming it, you could be missing out on free cash from the government to help with the cost of childcare and holiday clubs over the summer
By Sarah Handley Published
-
Morrisons launches Family Picnic Box for £20, but there is a way you can get it for less
Avoid sky-high food prices, and additional mental load, on day trips with the kids this summer with this genius picnic box from Morrisons
By Sarah Handley Published
-
Holiday childcare costs up 6% says new report, with supply shortages still an issue
Working parents facing higher costs when it comes to sorting childcare provisions during the school holidays
By Sarah Handley Published
-
Parents share the devastating impact of two-child benefit cap, as 1.6m children now affected
Campaigners urge the new government to scrap the controversial policy
By Sarah Handley Published
-
Don’t miss! 50% off kids tickets at Merlin attractions, including Madame Tussauds, SEA LIFE, and the London Eye
Merlin is offering discounted child tickets at loads of attractions across the nation, just in time for summer holidays - and it's teamed up with TikTok's ice cream twins to do it
By Sarah Handley Published
-
Primary school 'costing parents £6,000' according to new research - here's 6 ways to save money
The seven years of primary school can cost parents thousands of pounds, with lunches and school uniforms the biggest challenges. But there are ways savvy parents can ease the pressure of the financial burden
By Sarah Handley Published
-
Do I qualify for a school uniform grant? Parents can get up to £200 to cover costs from July
Hundreds of councils are helping parents cover school uniform costs this year and thousands of parents are eligible for the help
By Charlie Elizabeth Culverhouse Published