Around 8 million eligible households across the UK are set to receive a £299 Cost of Living Payment in February, as the Government unveiled its plans to reward work, reform welfare and grow the economy.
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Around 8 million households to receive £299 Cost of Living payment between Tuesday 6 February and Thursday 22 February
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Follows Autumn Statement where Chancellor delivered additional cost of living support to most vulnerable as well as tax cuts for hardworking families
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Comes as Government turns a corner on the economy and Work and Pensions Secretary ushers in next generation of welfare reforms
Around 8 million eligible households across the UK are set to receive a £299 Cost of Living Payment in February, as the Government unveiled its plans to reward work, reform welfare and grow the economy.
The third of up to three Cost of Living Payments will be made to eligible people on means-tested benefits between 6 February and 22 February and is part of a support package that has helped millions of households since July 2022.
The payments come as the Government announced £104 billion will be spent on cost of living support between 2022 and 2025 in November’s Autumn Statement – worth around £3,700 per household. Measures include:
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Uprating benefits by 6.7%
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Increasing the state pension by 8.5%
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Increasing the Local Housing Allowance by £7 billion
Our economy has turned a corner, and we are moving away from the big government, high spending, high borrowing, and high tax approach that was necessary before, and focusing on the long-term decisions required to strengthen our economy and give people the opportunity to build a wealthier, more secure life for themselves and their family.
As part of this, we announced that millions of the most in need will benefit from DWP’s next generation welfare reforms, including unprecedented employment and health support.
The Government’s £2.5 billion Back to Work Plan provides new funding for a range of schemes designed to help people both find and stay in work, benefitting over a million people with disabilities, health conditions, or long-term unemployed. A new Chance to Work Guarantee will tear down barriers to work for millions of claimants to try work with no fear of reassessment or losing their health benefit top-ups.
Mel Stride, Secretary of State for Work and Pensions, said:
We’ve delivered on our promise to halve inflation, putting money back in people’s pockets, while also providing millions of households with unprecedented financial support to ease cost of living pressures.
We will always protect the most vulnerable, while ensuring fairness for the taxpayer. We know that the best way to secure long-term financial security is through employment, so we’re rolling out the next generation of welfare reforms to put thousands more people on a pathway off benefits and into work.
The £299 payment in February 2024 will be sent automatically by the DWP and HM Revenue and Customs, so eligible people do not need to apply or take any action to receive it.
Jeremy Hunt, Chancellor of the Exchequer, added:
Inflation has halved, but I know some families are particularly vulnerable to cost of living pressures, which is why these payments are so important.
The best way we can help families is by getting more people into good jobs, including through our Back to Work Plan which will help more than 1 million people look for work and grow the economy.
This government’s drive to help the most vulnerable has seen 1.7 million fewer households in poverty than in 2010. As part of this support, the Local Housing Allowance increase, which will benefit thousands, comes into force in April 2024. The £7 billion investment over five years will benefit around 1.6 million households who will be around £800 a year better off.
The DWP also continues to encourage low-income pensioners not already getting Pension Credit to check their eligibility, as they could still qualify for the cost-of-living payment in February.
