Millions in UK to get second cost-of-living payment

The UK's Department for Work and Pensions (DWP) will start sending the second instalment of cost-of-living payments to recipients of low-income benefits. The cash handout of £650 (R13,318) in total for each eligible family was a bid under Boris Johnson’s government to help consumers as prices started to creep up in the northern hemisphere spring.

The measure had been part of a £37bn (R758bn) support package for households before Liz Truss’s Treasury announced other policies shortly after she took office.

In summer, a lump sum of £326 (R6,679) was paid as the first instalment to millions across the UK. Here’s what to know about the late-autumn batch, as well as help for pensioners and people with disability, and energy-bills support.

When will the second cost-of-living payment be made?

The government says the next payment of tax-free £324 (R6,638) will start on November 8 and continue until November 23 for Universal Credit and income benefit recipients. Like the first payment, those eligible won’t need to claim, or contact DWP, to receive the second one as money will be sent automatically using the same transfer method.

What are the payment dates for tax credit recipients?

Shortly after people on DWP income benefits have been paid, those who only receive HMRC tax credits will get their transfer in England, Scotland, Wales and Northern Ireland. The staggered timing is meant to avoid double payments.

Who will get the £324 payments?

Over 8-million households on low-income benefits and tax credits could get the £324 payment if they meet the qualifying period August 26 to September 25. They include recipients of Universal Credit, Jobseeker’s Allowance (JSA), Employment and Support Allowance (ESA), Income Support, Pension Credit, Child Tax Credit and Working Tax Credit.

Will pensioners get the £324 payment too?

Pensioners in qualifying low-income households will also get the second payment on top of the £300 dedicated support for those above the retirement age (born on or before September 1956).

What is the date for the pensioner cost-of-living payment?

The extra £300 (R6,147) will be added automatically to Winter Fuel Payment and paid in November or December. No date has been made public, but it should be around the same time in previous years.

Is the £150 disability cost-of-living payment overdue?

Most people on a disability benefit will have received the aid by the beginning of October since payment began on September 20. Six million people are eligible for this support in addition to the £650 help for income benefit and tax credit recipients.

When will the £400 energy rebate payment start?

The £400 (R8,196) energy discount for each UK household is spread evenly across six months from October 2022 to March 2023. The grant will be paid directly to electricity suppliers as a reduction to monthly energy bills, or credited to customers’ accounts if they use direct debit or credit card. Customers on prepaid meters will have the money applied to their meter or paid via a voucher. This is separate from Truss’s Energy Price Guarantee that came into effect from October 1, where a typical household’s annual energy bill is capped at £2,500 (R51,233) until April 2023.

What are the government’s plans after the scheme ends?

Unlike the runner-up in the Conservative Party’s leadership contest, Rishi Sunak, Truss’s economic agenda hinged on tax cuts instead of one-off handouts. There are no allocations for further cash support from her budget. However, it includes cancellation of National Insurance increase from November 6. Her plans to cut basic income tax to 19% has now been reversed, meaning it will remain 20% indefinitely, and the removal of top-tier income tax has also been scrapped.

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