Cost of Living Crisis: Government Support

Now: £150 council tax rebate

From April, people in England in council tax bands A to D should have received a £150 rebate from their council tax.

For most this has already arrived, if you have still not received your rebate, you should contact your local council.

July: National Insurance threshold raised

From 6th July, the threshold of what you can earn before paying National Insurance will rise from £9,880 to £12,570 a year.

July: £325 for most benefit claimants

If you live in the UK and receive Universal Credit, Tax Credits, pension credit or legacy benefits* you will get two payments of £325.

If you receive any of these benefits except Tax Credits, your first payment will arrive in your bank account from July*.

*More information on Legacy Benefits please click here.

*The exact payment date is not yet confirmed and will likely depend on when you get Universal Credit during the month and what type of other qualifying benefits and the payment date of these.

N.B. - Claimants must have begun a claim for these benefits by 25 May 2022 at the latest to qualify for the first of the two payments. The £650 will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

Late summer or early autumn: £325 for some Tax Credit claimants

If you are on Tax Credits you will also get two payments of £325. But this will take longer to arrive because it is being administered by HMRC, not the DWP.

It’s understood these are due in late summer or early autumn for the first payment, and by Christmas for the second payment.

By September: £150 for disability claimants

£150 will be paid into the bank accounts who are on the following disability benefits:

  • Disability Living Allowance
  • Personal Independence Payment
  • Attendance Allowance
  • Scottish Disability Benefits
  • Armed Forces Independence Payment
  • Constant Attendance Allowance
  • War Pension Mobility Supplement

N.B - People will have had to be claiming, or started a (later successful) claim for, these benefits by 25th May 2022. They will be paid directly, be exempt from tax, not count towards the benefit cap, and not have any impact on existing benefit awards.

The exact timing is not yet confirmed because the DWP has not passed the necessary laws to pay the money just yet.

Autumn: Second £325 payment for benefit claimants

As stated, the £650 one-off payment for people on benefits is coming in two £325 lump sums to bank accounts.

*More information on Legacy Benefits please click here.

*There is no date yet for the second lump sum, but the government states it will arrive in the Autumn for people on Universal Credit, Pension Credit, and most legacy benefits and will likely depend on when you get Universal Credit during the month and what type of other qualifying benefits and the payment date of these.

N.B - People on Tax Credits will have to wait longer – HMRC state people will get it by the end of the year.

October to March: £400 energy bills discount for all

All households will get £400*off their electricity bills from October as a non-repayable grant.

*You won’t get the £400 credited to your account in one go. It will happen over the course of six months from October to March, if you pay by monthly direct debit, you might get £66.67 off your bill per month. It’s a direct discount off your bills, not cash you can spend.

N.B - Customers with pre-payment meters will have the money applied to their meter or via a voucher. This is to be confirmed by each energy supplier.

November to December: £300 payment for most pensioners

A one-off 'Pensioner Cost of Living Payment' of £300 will go to pensioner households.

N.B - These payments, worth £2.5bn, will be paid alongside the Winter Fuel Payment which is worth between £100 and £300 for pensioners. For most pensioner households, this will be paid by direct debit. People are eligible if they're aged 66 or over by 19th September, although some pensioners do not qualify for the Winter Fuel Payment.

April 2023: Benefit and pension uprating

Even though benefits and pensions are not being permanently raised now - there will be a big rise next year.