DWP issues update on extending cost of living payments worth hundreds next year

More than 8million people across England received the £300 autumn cost of living payment.

The Department for Work and Pensions (DWP) hands out the money to struggling Brits. A third payment worth £299 is due to be paid next spring.

It will be given to those on eligible benefits including Universal Credit, Pension Credit, Tax Credits and more. Now an update for further support in 2024/25 has been revealed.

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During the recent Autumn Statement, Chancellor Jeremy Hunt made no reference to further support next year. And a DWP Minister also said there would be no more cost of living payments.

Labour MP Sir George Howarth asked if there were plans. But DWP Minister for Social Mobility, Youth and Progression Mims Davies MP confirmed there wouldn't be.

In a written response, she said: "Cost of living payments enabled us to target further support during the rising cost of living pressures.

"Delivering lump sum payments got support faster to those who needed it, reflecting our commitment to providing direct and timely relief to those who need it most."

She went on to explain how State Pension and benefits increased by 10.1% in April 2023 in line with the September 2022 inflation rate.

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In a separate question, Sir George urged the DWP to amend current cost of living payment eligibility criteria to include people on Housing Benefit and Council Tax Reduction.

However, Ms Davies replied in another written response: "There are currently no plans to amend eligibility criteria for cost of living payments.

"Housing Benefit is not an income-replacement benefit; it is intended to cover only housing costs. Therefore, Housing Benefit is not a qualifying means-tested benefit for the cost of living payment."

She added: "Those with the lowest incomes may also be in receipt of a qualifying means-tested benefit alongside Housing Benefit to cover their other living costs, which could make them eligible for a cost of living payment."

Ms Davies also clarified eligibility for a Council Tax Reduction is determined by local councils and is not a national policy. The DWP Minister urged those struggling with finances to check for unclaimed benefits.

You could do that by using one of the independent, free and anonymous calculators available on the GOV.UK website.

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