Cost Of Living Payment – A lot of people in the United Kingdom are not able to live as they used to do before November 2019. First, the pandemic hit the world as a novel coronavirus that started in China and spread in the whole world, including the United Kingdom. Secondly, Russia announced an invasion of Ukraine back in February 2022.
Both incidents hit regular citizens of the United Kingdom very hard, and the United Kingdom is becoming more expensive to live in each day. The government had tried everything in their hand to help the citizens, and recently the chancellor announced a new wave of cost of living payments to help families who are struggling.
As you are already aware, the United Kingdom is seeing a sharp rise in inflation. At the same time, we are also experiencing soaring energy prices. The Russia Ukraine war is impacting every citizen in the United Kingdom in the name of soaring energy prices.
What is the latest cost of living payment update?
Recently, chancellor Rishi announced a new wave of cost of living payments to help families who are struggling during tough times. As for the announcement, you may be eligible to get 650 pounds paid in two lump-sum amounts.
It is a very good thing that the government is thinking about the general public and how they are living right now. A lot of people in the United Kingdom require these living payments as the prices of everything, starting from food to all the way energy, have been soaring at a rapid speed.
The government has set fixed criteria, and you should be following those criteria to get the benefits. In case you do not fall in that category, then you won’t be issued any cost of living payments in the upcoming days.
Eligibility to Get Cost of Living Payment
Before we move ahead, let’s first discuss the eligibility criteria to get cost of living payments. Not every citizen of the United Kingdom is eligible for these payments as you have to fall in a specific category.
The government is going to issue a payment of £650, which will be paid in two lump sums of £326 and £324. To get these payments, you must be the following.
- If you are under Universal Credit, then you are eligible for a cost of living payment.
- Everyone who is on an income-based job seekers allowance is also eligible to get £650.
- All the people who are in income-related employment and support allowance can also get the benefits.
- In case you are under income support or you are in pension credit, then you can also apply for a £650 cost of living payment.
Timeline of the payments in the cost of living payment system
The government of the United Kingdom has already made it clear that every eligible person in the United Kingdom will receive at least $650 if they fall within the eligibility criteria as prescribed by the government.
Along with that, the government also issued a timeline stating that the first payment of 326 pounds will be made between the 14th of July 2022 to the end of July 2022. In the statement, the UK government further mentioned that they would update guidance when the payments have already been made.
As for the second payment of £324, which will be the second installment of £650, you can expect it in autumn 2022 if you are entitled.
Apart from all that, the government also clearly mentioned that there is an option for additional disability cost of living payment for people who also get a qualifying disability benefit.
What is the Disability Cost of Living Payment?
Along with the regular cost of living, the UK government also announced that they have a provision for disability cost of living payment. The government of the United Kingdom has also set up prefixed criteria for disability cost of living payment.
You might be eligible to get a lump sum payment of 150 pounds if you are in any of the following categories.
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
As per the government of the United Kingdom, you are eligible to get £150 of payments from September 2022. It can become an additional benefit to you if you are also qualifying for low-income benefits or tax credits.
Experts on the Cost of Living Payment
Several experts, including members of parliament, have already raised several questions regarding the cost of living payments.
One of the biggest issues which were picked up by labor member of parliament Alex Sobel was regarding the exclusion of new style employment and support allowance.
The Labor MP asked the government, “on what basis did the department decide to exclude people in the support group for new style employment and support allowance from the 650-pound cost of living payment”.
In response, Conservative MP David Rutley said that the government is committed to responsively managing the public finances by targeting the cost of living payment support system.
A lot of financial experts have already raised their questions regarding the latest announcement of the cost of living payment system. First of all, the government did not include every person in the United Kingdom. The government could have created selection criteria based on the overall income of a person, but the government chose a different setup.
Yes, some people are going to benefit from the cost of living payment system, but a lot of people will not qualify for the same. It is getting tough for every person in the United Kingdom to pay their energy bill prices as commodities experts have already projected more spikes in the prices till the war is concluded.
Are there any ineligibility criteria for the cost of living payment?
Yes, the government has mentioned that there is an ineligibility criterion. You are not entitled to get any payment if you get New Style Employment and Support Allowance, New style job seekers allowance, or contributory employment and support allowance.