Eight million households on means-tested benefits will receive their final cost of living payment of £299 from Tuesday, the government has announced. The payment, which is the last of three instalments totalling up to £900, will be paid directly into bank accounts between now and 22 February without the need to apply.
The £299 payment is part of the government's £104bn cost of living support package. It will benefit more than 680,000 households in Scotland, over 400,000 in Wales, and 300,000 in Northern Ireland. The payments were introduced in 2022, initially as a £650 payment in two instalments, later increased to £900 across three payments.
While inflation has eased from double digits, it rose unexpectedly to 4% in December, and energy bills remain high due to the ongoing impact of Russia's invasion of Ukraine. Charities have urged the government to announce fresh support, as the current scheme has no plans for extension.
Morgan Wild, interim director of policy at Citizens Advice, said: 'Increasingly, people coming to Citizens Advice are living on empty, unable to afford their essential costs. The cost of living payments offer some respite, but this is short lived. We need long-term commitments to raise people's incomes.'
A report by the cross-party Commons work and pensions committee in November concluded that the payments, while welcome, had not been sufficient to address the scale of the problem, offering only a 'short-term reprieve'. Work and Pensions Secretary Mel Stride said: 'The economy has turned a corner, and with inflation falling we are providing millions of the most vulnerable households with another significant cash boost.'
