Cost of Living Payments for 2023

In November 2022, the UK Government announced that there will be some further financial support made available in 2023 for those on means tested benefits, disabled people, and pensioners.

Cost of Living Payments to households on means tested benefits

More than 8 million UK households on eligible means tested benefits will receive additional Cost of Living Payments totalling up to £900 in the 2023-24 financial year.

This includes eligible households receiving the following benefits:

Universal Credit
Income-based Jobseekers Allowance
Income-related Employment and Support Allowance
Income Support
Pension Credit
Working Tax Credit
Child Tax Credit

These will be paid out in three instalments:

£301- first cost of living payment – will be paid between 25 April and 17 May 2023

£300 – second cost of living payment – will be paid between 31 October and 19 November (those receiving Tax Credits only will be paid between 10 and 19 November 2023)

£299 – third cost of living payment – will be paid between 6 February and 22 February 2024 for most people ( those receiving Tax Credits will receive the payment between 16 February and 22 February 2024).

To be eligible for the first Cost of Living Payment of £301, you need to have been entitled to a payment for one of these benefits between 26 January and 25 February 2023, or payment for an assessment period ending between these dates.

To be eligible for the Second Cost of Living Payment of £300, you need to have been entitled to a payment for one of these benefits between 18 August and 17 September 2023, or payment for an assessment period ending between these dates. For those in receipt of Tax Credits, you need to have received a payment of tax credits for any day in the period between 18 August and 17 September 2023.

To be eligible for the Third Cost of Living Payment of £299, you need to have been entitled to a payment for one of these benefits between the period of 13 November 2023 to 12 December 2023.

DWP is also encouraging low-income pensioners not already getting Pension Credit to check their eligibility, as they can still qualify for the £301 Cost of Living Payment if they make a successful backdated Pension Credit application by 19 May.

Those who are eligible for the £301 Cost of Living Payment solely through tax credits, and are not eligible through DWP means-tested benefits, will be paid by HMRC shortly after DWP payments begin.

These payments will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

New Cost of Living Payments for pensioners

More than eight million pensioner households across the UK will receive an additional £300 Cost of Living Payment for pensioners in 2023-24 to help with bills. This is in addition to any means tested benefit and disability payments that they may be eligible for.

This payment will be made in Winter 2023/24 – DWP will provide further detail on timing of the payments and eligibility dates in due course.

This payment will be tax-free and will not have any impact on existing benefit awards.

New Disability Cost of Living Payments for people on disability benefits

Over 6 million people across the UK on eligible ‘extra costs’ disability benefits will receive a further £150 Disability Cost of Living Payment in 2023-24, to help with the additional costs they face. This is in addition to any Cost of Living Payments for households on means tested benefits and pensioner households that they may be eligible for.

This includes everyone eligible for:

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

You will automatically receive the disability cost of living payment if you were in receipt of one of the qualifying disability benefits as of 1 April 2023.

The payment will be made between 20 June and 4 July 2023. However, your payment might come later if you’re awarded a qualifying disability benefit at a later date or if you change the account your benefit is paid into.

This payment will be tax-free and will not have any impact on existing benefit awards.

For further information about any of the cost of living payments: https://www.gov.uk/guidance/cost-of-living-payment

Cheaper phone and broadband bills

You may be eligible to move onto a social tariff if you’re struggling to afford your broadband or phone services.

Check the Ofcom website to see if you can switch to a social tariff

Social Security and Welfare Payments

Check that you or the person you are caring for, are claiming any benefits or social security payments that you may be entitled to. Our page on Benefits and Grants provides some further information about some of the Social Security and Welfare Payments that you may be entitled to.