Cost of Living payments are now due

In the Autumn statement back in November 2022, the Chancellor Jeremy Hunt announced that there would be further cost of living payments made from April 2023.

Find out who qualifies, how much the payments are worth and whether you need to apply.

Around 8 million families will benefit.

It is anticipated that approximately 8 million families will receive a cost of living grant over the next 12 months with the first payments being made from April 2023.

How much is the grant?

A total of £900 will be paid over three instalments.

April 2023 - £301

Autumn 2023 - £300

Spring 2024 - £299.

Who qualifies for the grant?

The grant is essentially for those who are on low-income benefits such as Universal credit.

To get the first £301 payment, you need to have been paid (or have been eligible for a payment of) one of the benefits listed below:

Child tax credit

Income support

Income-based jobseeker's allowance

Income-related employment and support allowance

Pension credit

Universal credit

Working tax credit

The qualification dates for being paid or being eligible for the support listed above is between 26 January 2023 and 25 February 2023.

Do I need to pay the grant back?

No, this isn’t a loan so you do not need to pay the grant back.

How do I claim the grant?

You do not need to claim the grant, it will be paid automatically if you meet the qualification criteria.

Additional cost of living payments – including for those with disabilities and pensioners

Separate from the £900 grant you could receive if you’re on a low-income, you may also qualify for two further payments.

If you claim certain disability benefits, then a further one-off payment is being made in Summer 2023 which you may qualify for.

There is also a further £300 available in October or November 2023 if you’re a pensioner and you’re entitled to the winter fuel payment.

Further information

Further information on be found on all the Cost of Living payments can be found on the Government website here.

Summary

As the cost of living continues to rise it’s important to note that help is available.

The good news is that if you qualify you do not need to apply for the payments - they will be made automatically. The first payments are being made from late April and most of the payments should be made by the middle of May.

Remember, CreditLadder can help you improve your credit score.

CreditLadder can improve your credit position by reporting your rent payments. CreditLadder is the first way to improve your credit score and position across all three of the main Credit Reference Agencies in the UK, namely Experian, Equifax and TransUnion. Building up a high credit score has a lot of benefits, including helping you access finance at better rates - this can also help save you money. CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.

Remember the content provided in this article is for information purposes only and should not be considered as advice.