Eight million households get £299 cost of living payments

Eight million households on means-tested benefits will receive their final cost of living payment to help with high food and energy bills this month,

The £299 payment, the last of three instalments that totalled £900, will go directly into people’s bank accounts between now and 22 February, without the need to apply. It is part of the government’s £104bn cost of living support package.

The payment will be sent out automatically and recipients do not need to apply to receive it. This includes tax credits-only customers who will receive the payment from HMRC between 16 and 22 February.

It is the third of up to three payments totalling up to £900 paid to eligible households on means-tested benefits over 2023/24 and comes as part of a support package that has helped millions of households since autumn 2021.

The government says that the economy has turned a corner, and we are moving away from 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. This includes sticking to the plan to keep inflation down – which has already more than halved – and cutting taxes for hard working people to help them keep more of what they earn and drive down the cost of living.

Mel Stride, Secretary of State for Work and Pensions, 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. Our fair approach to welfare is underpinned by a belief that the best way to secure long-term financial security is through work. This is why we have cut taxes for over 27 million working people and have launched a £2.5 billion Back to Work Plan to help thousands more people off benefits and into jobs.”

Chancellor of the Exchequer Jeremy Hunt said “Our decisive action helped to more than halve inflation last year while building the foundations for long-term growth through sensible tax cuts, which will help people’s money go further. But the legacy of Covid and the ongoing Ukraine war has meant the last few years have been tough for many, which is why we’ve provided one of the largest support schemes in Europe worth £3,700 for the average household.”