Personal Finance

DWP payment of £299 to help millions with cost of living in New Year confirmed

Millions will get a cash boost in the New Year, with a £299 cost-of-living payment hitting eligible accounts in February, the Government has announced.

The DWP will pay around eight million eligible households across the UK as part of a three-payment package which is worth £900 in total.

The £299 payment will be made to people on eligible means-tested benefits between February 6 and 22 and is part of a wider support package for households.

The February payment in will be sent automatically, so eligible people do not need to apply or take any action to receive it.

People are also being warned to watch out for any scam messages about cost-of-living payments purporting to be from government bodies.

Mel Stride, Secretary of State for Work and Pensions, said: “We will always protect the most vulnerable, while ensuring fairness for the taxpayer.

“We know that the best way to secure long-term financial security is through employment, so we’re rolling out the next generation of welfare reforms to put thousands more people on a pathway off benefits and into work.”

Chancellor Jeremy Hunt said: “Inflation has halved, but I know some families are particularly vulnerable to cost-of-living pressures, which is why these payments are so important.”

The Department for Work and Pensions (DWP) is also encouraging low-income pensioners who are not already receiving Pension Credit to check their eligibility, as they could still qualify for the cost-of-living payment in February.

The DWP has handed out multiple cost of living payments to help struggling Britons with bills over the Christmas period and many people wonder if this will continue for the year ahead.

In October, Tom Pursglove, DWP Minister of State for Disabled People, Health and Work, said they had been assessing whether any more help was needed.

He said: “There is ongoing work to review the cost of living payments that the Government has made available in the current climate. I anticipate that the results will come forward over the autumn and inform future decisions that we make.”

However, there was no mention of future cost of living payments in the Autumn Statement.

Sir George Howarth, Labour MP for Knowsley, asked the DWP if there are any plans in the pipeline for extra support beyond the final payment which is scheduled for spring next year.

Mims Davies, Parliamentary Under Secretary of State at the DWP, said in a written response: “There are currently no plans to extend the cost of living payments beyond the Spring.”