Almost one in four families across the UK will receive £324 from the government this month as the second Cost of Living Payment is being sent out from 8 November 2022.
8 million households who claim qualifying means-tested benefits will automatically receive £324 as part of the government's £37 billion package to provide the support they need to manage cost of living pressures.
Richard Fuller MP said:
The government understands that people are struggling with rising costs and that is why we have consistently acted to ensure millions of low-income families are supported. We will continue to act with compassion as we navigate challenging global economic circumstances.
That is why over eight million vulnerable households – almost a quarter of families in the UK – will automatically receive a second cost of living payment worth £324 in their bank account from 8 November.
As part of a wider £37 billion package of support we are providing the most vulnerable people in our society with £1,200 of support – helping them manage their finances through the winter months.
DWP claimants will receive this second Cost of Living payment by 23 November 2022, and eligible tax credit claimants, on no other means-tested benefits, will receive it between 23 and 30 November 2022. Payments will automatically be made to everyone eligible, with no need for anyone to apply.
The payments from the Department for Work and Pensions are made directly into eligible recipients’ bank accounts, with no need for people to apply or do anything to receive it. The payment reference on DWP recipients’ bank accounts will be their national insurance number, followed by “DWP COL”. For HMRC recipients the payment reference will be “HMRC COLS”.
The government’s £1,200 support package contains £400 for energy bills that is being paid in monthly instalments to all domestic energy customers between now and March 2023. It also includes a £150 Council Tax rebate for 85% of all UK households and the previous £326 Cost of Living Payment made by DWP in July and by HMRC in September.
On top of this, nearly one in ten people received the £150 disability payment in September and a £300 addition to Winter Fuel Payments will go to over eight million pensioner households over the winter.
Those eligible to receive the second cost of living payment from today include people on:
- Universal Credit
- Income-based Jobseekers Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
To be eligible, claimants must have been claiming and entitled to a payment between 26 August and 25 September 2022, with the exception of pensioner households, who may be able to have a new Pension Credit claim backdated.
They have until 18 December 2022 to submit a valid claim for Pension Credit, which could entitle them to the £324 Cost of Living payment. Anyone can check their eligibility for Pension Credit using the online calculator or by calling the freephone claim line, on: 0800 99 1234.
Even if you are not on a qualifying DWP benefit you may still be eligible for the £324 payment, as HMRC are also making payments to over a million people who receive Working Tax Credit or Child Tax Credit and no other eligible benefits. These will be paid between 23 and 30 November 2022 and customers do not need to contact the government or apply for the payment at any stage.
The £324 payment and the overall £1,200 package come on top of wide-ranging government support with the cost of living this winter, including an extension to the Household Support Fund, which is providing an extra £421 million between October and March to help vulnerable people with the essentials.
As well as this, the Energy Price Guarantee is ensuring people across the country pay significantly less for their energy bills, with a typical household saving around £700 this winter.
For more information on help with the cost of living, please visit Richard's Support with the Cost of Living web pages.
