Starting this Tuesday, eight million households in the UK will receive a £299 payment to help with the cost of living

2022

  Starting this Tuesday, around eight million households receiving means-tested benefits will get the third and final installment of the cost of living payment, aimed at helping with rising food and energy expenses. This £299 payment, part of the government's £104 billion cost of living support package, will be automatically deposited into people's bank accounts by February 2022, with no application required. Beneficiaries include over 680,000 households in Scotland, 400,000 in Wales, and 300,000 in Northern Ireland on means-tested benefits.

Introduced in 2022, the payments were initially set at £650 in two installments by then Chancellor Rishi Sunak, and later increased to a total of £900 in three payments by Chancellor Jeremy Hunt in November of the same year. While there are no current plans to extend the scheme, charities are urging the government to announce additional support.

Despite a recent easing in the inflation rate, which rose unexpectedly to 4% in December, the cost of household gas and electricity remains high due to the energy crisis triggered by Russia's invasion of Ukraine in February 2022. Additionally, rents have surged amid a shortage of available properties.

Morgan Wild, the interim director of policy at Citizens Advice, emphasized that while the cost of living payments provides some relief, it is short-lived. Many people seeking help from Citizens Advice are struggling with unaffordable housing, historically high energy bills, and other escalating costs, putting them in desperate situations. Wild called for long-term commitments to raise people's incomes and standards of living.

In November, a report by the cross-party Commons work and pensions committee acknowledged the welcome relief provided by the cost of living payments but highlighted their insufficiency to address the magnitude of the problem, offering only a "short-term reprieve" for those grappling with high inflation and bills.

Responding to the final payment announcement, Mel Stride, the work and pensions secretary, expressed optimism, stating that the economy has turned a corner and, with falling inflation, millions of vulnerable households are receiving another significant cash boost.