Eight million households will get the £900 payment between April 2023 and March 2024. The payments are similar to the £650 Cost of Living payments made in 2022 and will go to households claiming low-income benefits.
Two payments totalling £650 have been made to more than eight million low-income households.
The first instalment of £326 was paid between July 14 and 31.
The second instalment of £324 should have reached those eligible by the end of December.
They are available to households who receive the following benefits:
- Universal Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working tax credit
- Child tax credit
- Pension Credit
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Anyone who thinks they are entitled to the help but has not received any instalment should contact the DWP.
To be eligible for the latest instalment, people must have been claiming and entitled to a benefits payment between August 26 and September 25, with the exception of pensioner households, who may be able to have a new Pension Credit claim backdated.
There are 1.1 million people who receive only tax credits, rather than any of the other benefits.
They received the second instalment between 23 and 30 November, straight into their bank accounts.
They said: “These will be made in more than one payment. DWP and HMRC will provide further detail on timing of these payments and eligibility dates in due course.”
The Treasury Committee has recommended to the Government that the £900 be split into six payments made over the colder months (for example, one payment in each of October, November, and December in 2023 and January, February and March in 2024.
Six equal payments would work out as £150 a month – although the Government may decide to give higher payments in the coldest months.
The Government has said there will be more than one payment and further details will be given in due course.
Harriett Baldwin, chair of the Treasury Committee, said: “As winter draws in and temperatures drop, many will be worrying about the cost of their energy and heating bills.
“Alongside the support already provided this year, the Chancellor has told us that further cost-of-living assistance will be available next winter to recipients of means-tested benefits.
“This runs the risk of creating perverse cliff-edges and eroding work incentives, and our cross-party committee is proposing a way of mitigating these risks.”
As with the £650 payment, people who receive only tax credits will be paid the money separately by HMRC.
The payment will be tax-free and not count towards a person’s benefit cap, and will not impact their benefits claim.