The UK government introduced a series of payments to help households cope with rising living costs. These payments were made in instalments during 2023 and early 2024 to provide financial support to those in need.
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Extra Cost of Living Payment 2024
The program offering extra financial support to eligible households, known as the Extra Cost of Living Payment scheme, has concluded, and there are no intentions to extend it. While in effect, the scheme offered substantial financial assistance to qualifying families, aiding them in addressing their urgent requirements. This aid was essential for many households experiencing financial hardships as a result of the escalating cost of living.
Impact in 2024
During 2024, these payments were crucial in lessening financial strain and worry for the recipients. The additional funds enabled individuals to uphold a fundamental quality of life and circumvent tough decisions regarding necessities like groceries, housing, and utilities. By easing some of the financial hardship, the payments enhanced the general welfare of numerous households.
Who Received the Payments?
The Department for Work and Pensions (DWP) has ceased the distribution of Extra Cost of Living Payments. These payments were implemented as short-term assistance for households grappling with the cost-of-living crisis. The last payments were disbursed earlier this year.
During the distribution of payments, they were directed towards people who were receiving particular benefits, including:
- Universal Credit: A benefit for people who are unemployed or on a low income.
- Pension Credit: A benefit for people over State Pension age to help with living costs.
- Child Tax Credit: A benefit for people responsible for children.
- Working Tax Credit: A benefit for people who work and are on a low income.
- Certain disability benefits: Benefits for people with disabilities to help with extra costs.
If you think you might be eligible for other financial support, contact the DWP or visit the government website for more information.
Payment Dates
The most recent cost-of-living payments were distributed from February 6 to February 22, 2024. These payments, which constituted the third round of support for approximately eight million households following means tests, offered aid to millions of low—and moderate-income families. They aimed to offer timely financial aid to those in need.
Checking Payment Status and Eligibility
You should contact the DWP if you should have received a Cost of Living Payment but haven’t seen it in your bank account. They can check your payment status and eligibility. If you are eligible, the DWP will ensure you receive your payment. It’s important to keep your contact information up to date with the DWP to avoid any delays in receiving payments.
Summary of Cost-of-Living Support
The Department for Work and Pensions provided three types of cost-of-living support:
Payment Type |
Amount |
Eligibility Criteria |
|---|---|---|
Cost of Living Payment |
£650 |
Delivered in two instalments to eligible families on means-tested benefits |
Disability Cost of Living Payment |
£150 |
One-off payment for eligible people with disabilities |
Pensioners Cost of Living Payment |
£300 |
Added to the Winter Fuel Payment for eligible pensioners |
All these payments have already been issued, and the schemes have ended. If the DWP continues this program in the future, most people will receive the payment automatically. There is usually no need to apply, as the DWP will use existing information to identify those eligible and pay directly into your bank account.
Taxation Benefits
People receiving the cost-of-living payment also get certain tax benefits, including:
- Universal Credit: A benefit for people who are unemployed or on a low income.
- Jobseeker Allowances: A benefit for people who are actively seeking work.
- Employment and Support Allowances: A benefit for people who have a disability or health condition that affects their ability to work.
- Pension Credits: A benefit for people over State Pension age to help with living costs.
- Working Tax Credits: A benefit for people who work and are on a low income.
- Child Tax Benefits: A benefit for people responsible for children.
If you receive both Child Tax Credit (CTC) and Working Tax Credit (WTC), you will only get a cost-of-living payment for CTC. If you receive a tax credit, it will be provided by HMRC.
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