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 and is passionate about helping mums save money wherever they can - whether that's spending wisely on toys and kidswear or keeping on top of the latest news around childcare costs, 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.
-
Worried about your teen 'being smelly'? They can't help it, according to scientists, and help is on its way to ease the problem
We know that puberty can cause all sorts of smells to emanate from teens - now scientists have revealed exactly what you're smelling, and how evolution contributed.
By Lucy Wigley Published
-
Parenting coach shares 4 'powerful' reframes to try next time it feels like your kid is pushing all your buttons (and #4 is a game changer)
A parenting coach has shared four ways parents can reframe their thoughts when their kid has big emotions. Giving them a try could offer big results in little time.
By Lucy Wigley Published
-
New data highlights the main disparities when it comes to parents requesting flexible working, and sadly we're not surprised by the findings
We'll give you three guesses as to which parent is more likely to ask for flexible working arrangements from their employer...
By Sarah Handley Published
-
Record number of families opt-out of claiming child benefit, but the decision could have serious repercussions for your future
Stark warning for families as number of parents who opt-out of receiving child benefit reaches 10-year high
By Sarah Handley Published
-
'It isn’t a holiday – it is crucial bonding time' - 70% of dads can't afford to take two weeks paternity leave, according to new research
The research also found that only 14 per cent of fathers were ready to return to work mentally after taking their paternity leave
By Sarah Handley Published
-
Two-child benefit cap 'pushes children into poverty' - campaigners urge government to scrap 'cruel policy' that impacts 1 in every 10 children
The controversial two-child benefit cap has met with strong opposition since its introduction in 2017
By Sarah Handley Published
-
Gen-Z could be costing their parents £1,300 a year, by refusing to do this one thing (but it's not always their choice)
It's not just parents who are facing the additional costs, the costs for Gen Z could be even higher
By Sarah Handley Published
-
More than half of parents want to do this important thing for their kid's education but can’t afford to, according to new research
Pressures on the family budget are preventing parents from paying for educational support outside of school
By Sarah Handley Published
-
75% of mums feel guilty buying things if they earn less than their partners, according to social media poll, and the comments section was part heartbreaking, part inspiring
Some mothers felt guilty for spending their partners money, while others saw it as household money instead
By Sarah Handley Published
-
10 best zoos in the UK based on ticket prices, reviews and value for money
The best zoos in the UK have been determined based on a number of key factors, include prices, popularity, Trip Advisor ratings and how many animals they have
By Sarah Handley Published