Eight million households on means-tested benefits in the UK will receive their final cost of living payment to help with high food and energy bills starting from Tuesday. This payment, amounting to £299, is the last of three instalments that totalled £900 and will be deposited directly into people’s bank accounts by 22nd February. The initiative is part of the government’s £104 billion cost of living support package.
The cost of living payment will benefit over 680,000 households in Scotland, more than 400,000 in Wales, and 300,000 in Northern Ireland who are on means-tested benefits. These payments were initially introduced in 2022 when the then chancellor, Rishi Sunak, announced a payment of £650 in two instalments in May. Later, in November of the same year, Jeremy Hunt, the chancellor at the time, increased the total payment to £900 across three instalments.
Although the government has not announced any plans to extend the scheme, charities have urged for additional support to be provided. Despite a slight easing of the inflation rate from double digits, it unexpectedly rose to 4% in December, marking the first increase in 10 months. Additionally, the cost of household gas and electricity remains high due to the energy crisis caused by Russia’s invasion of Ukraine in late February 2022. Furthermore, rents have skyrocketed due to a shortage of properties on the market.
The final cost of living payment aims to alleviate some of the financial burdens faced by households on means-tested benefits. However, ongoing support and measures are necessary to ensure the well-being and stability of vulnerable individuals and families across the country.