Cost-of-living cash roll: support payments begin today
Millions of families are set to receive further cost-of-living payments today, the first of three for this year.
The £301 payment arriving in peoples bank accounts today is part of the governments continued efforts to combat inflation, which hit a record high in October 2022, and is still above 10%.
Those eligible will receive this first payment anytime from now until May 17.
The next two payments are expected this autumn and next spring, totaling £900 when all is said and done.
The lump sum payment from the Department for Work and Pensions (DWP) is means tested, and will be received by those entitled to benefits including: Universal Credit, Pension Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, and tax credits.
Mel Stride, Secretary of State for Work and Pensions, said: “This latest additional payment will be welcomed by millions of families – as will further payments due over the next year.
“We have continually supported those most vulnerable to rising costs, including through record benefits and national living wage increases as well as these exceptional cost-of-living payments responding to the global pressures we are facing.
We will also continue to deliver on our five priorities, including halving inflation, as this will ease pressure on households currently struggling with household bills and rising prices.”
Accompanying these payments will be a further £150 for people on disability benefits in the summer, and £300 accompanying regular winter fuel payments for pensioners.
Continued work to battle inflation
The move is just one in a slew of measures taken to aid people through the turbulence of rising prices.
Interest rates continue to be increased nationwide, and the national living wage rose by 9.7% to £10.42 on April 1.
Jeremy Hunt, Chancellor of the Exchequer said: “The best thing we can do to help people’s money go further is deliver on our priorities to halve inflation and grow the economy.
“But we’re also here to help people through these tough times, which is why we’re holding down energy bills, freezing fuel duty, increasing Universal Credit, and giving £900 payments to low income and vulnerable families – all in part funded through windfall taxes on energy profits.”
By the end of the payment period, HM Revenue and Customs (HMRC) will match the £301 payments to one million eligible families receiving tax credits only.
According to financial expert Mark Doughty of Mark’s Mortgages these are the right steps.
He said: “The cost-of-living crisis is being determined by many factors, however and according to those within the financial sector, the main driving factor relates to the surplus money currently in the UK economy as a result of the support the government offered members of the public and businesses during COVID Lockdown periods.
“In October 2022, it was suggested £300billion remained surplus. As a result of this, through taxes applied to certainty such as gas, electricity, car fuel, interest rates the government can recoup some of the surplus money.
“In March, it was reported £208billion remains surplus. It is my understanding, the cost-of-living will decrease August 2023 onwards, once the government has recouped as much as satisfactory.
“Any possible decrease will understandably be influenced by other factors too, such as war, or any unsettlement.”
All of the payments will be tax free.
