Cost of Living Payments. Support Package 2023-24

Unveiling the 2023-24 Cost of Living Support Package

The government has recently unveiled the Cost of Living Support Package, a comprehensive scheme designed to offer financial assistance to over eight million households currently availing of means-tested benefits. The specifics of the Cost of Living Payments for the 2023-24 tax year have now been officially released.

What Are the 2023-24 Cost of Living Payments?

Beneficiaries deemed eligible are set to receive a maximum of three separate Cost of Living Payments, namely, £301, £300, and £299. This allocation includes those individuals receiving pension credit and will be distinct from other benefit payments.

Scheduled Payment Dates for the Cost of Living Support Package

The Cost of Living Payments for the 2023-24 tax year is due to be dispensed in the following manner:

• £301 to be distributed between 25th April and 17th May 2023, targeting primarily those on DWP benefits.
• £301 scheduled for payment from 2nd to 9th May 2023, chiefly for individuals on tax credits and no other low-income benefits.
• £300 is expected to be paid in autumn 2023 for most beneficiaries.
• £299 anticipated for disbursement in spring 2024, again, for most individuals.

Additional Payments Under the Cost of Living Support Package

In addition to the standard allocations, further payments may also be provided. For instance, a Disability Cost of Living Payment of £150 is anticipated to be paid to qualifying recipients during the summer.

Winter 2023-24 will see an extra one-off payment ranging from £150 to £300 distributed to pensioners. This is the Winter Fuel Payment, a governmental initiative to support older people in keeping warm during the colder months. The specific amount each pensioner receives is influenced by various factors, including their age and the ages of other occupants in their household.

Understanding HMRC’s Updated Guidelines on Cost of Living Payments

HMRC has recently revised its guidelines about these payments. It has been made clear that claimants will not receive a Cost of Living Payment for a low-income benefit if their benefit has been slashed to £0 due to a ‘sanction’. However, they might still be eligible for a Cost of Living Payment if they received a ‘hardship payment’ following a ‘sanction’.

More information about Cost of Living Payments.