When is the cost of living payment? Explanation of dates for second CoL grant, energy discount and winter fuel payment
He came as households struggle with soaring energy priceswith Liz Truss intervenes to announce that energy price cap would be frozen at £2,500 a year from Octoberrather than rising to £3,549 as previously announced.
Among the payments still to be issued in autumn and winter are the second part of the cost of living payment of £650a £400 tiered rebate on energy bills and winter fuel payment.
When is the second cost of living payment?
On Monday, October 3, the Department for Work and Pensions (DWP) updated his advicesrevealing that the second payment will arrive between Tuesday 8 and Wednesday 23 November 2022 for the majority of applicants.
He previously said the payment would be made sometime in “fall 2022”.
This includes those means-testedlow-income benefits such as Universal Credit, Income Support and Pension Credit, which the government says cover more than eight million households.
The DWP says it will “make a small number of payments on November 8, with the number increasing significantly from November 9.”
However, applicants who qualify for payment only through tax credits will have to wait a little longer.
Having previously stated that this would happen in “winter 2022”, the current DWP guidelines are as follows: “These will be paid shortly after DWP payments and customers do not need to contact the government or request payment at any time.
For people on low-income benefits, the first £650 payment started automatically landing in bank accounts from Thursday July 14 From.
Those eligible for tax credits then began to receive the first aid between Friday 2 and Wednesday 7 September, approximately seven weeks after the initial deployment.
The amount of each installment of the £650 cost of living payment is the same whether claimants qualify through means-tested benefits or through tax credits.
But instead of being equal amounts, the first part of the grant was £326and the second installment will be be £324.
According the governmentthis is to prevent the risk of fraud: “Payouts are designed to be deliberately slightly uneven to minimize the risk of fraud by those who may seek to exploit this system.”
If you are eligible for payment, you don’t need to apply – the £650 will be automatically submitted to you and should appear in your bank account with the code “DWP COL” or similar.
- Universal Credit
- Income-Based Jobseeker’s Allowance
- Employment and Income Support Benefit
- Income support
- Labor tax credit
- Child tax credit
- Pension credit
He said claimants must have received one of these benefits or started a successful claim by Wednesday, May 25.
How is the energy rebate paid?
A £400 off on energy bills is be paid to consumers in six monthly installments during the winter – from October – with subsidies administered by energy providers.
The discount will break down into installments of £66 in October and November, rising to £67 per month from December to March 2023.
It should be provided monthly, whether people pay their bills monthly or quarterly or have a payment card associated with it.
Holders of a domestic electricity metering point who make payments by payment cardsstandard credit and direct debit will receive an automatic deduction on invoices.
Many energy providers – such as Bulb, E.ON and Octopus Energy – automatically credit the amount to their customers’ accounts, which means that the invoices themselves will be reduced.
However, British Gas is one of a handful of companies charge customers their usual amount by direct debit, then credit £66 to their bank account. It is the same method that is used by EDF, SSE and Ovo Energy.
People who use prepaid meters and recharge their credit before consuming energy will receive coupons the first week of each month.
These will be sent by SMS, email or post with the latest contact details customers have left with suppliers.
The discount also applies to students and other tenants renting properties with domestic electricity contracts from landlords where fixed energy costs are included in their rental charges.
In these circumstances, landlords reselling energy to their tenants should pass on discounted payments appropriately, in accordance with Ofgem rules to protect tenants.
The £400 energy payment is paid to every household in the country, with no means test.
The plan originally called for households to receive a £200 rebate on their energy bills in October, which would then be paid back over five years from 2023, with customers paying an additional £40 on their bills each year.
However, at the end of May – and after much criticism – Rishi Sunak, the chancellor at the time, announced that the reduction would increased to £400 and would no longer have to be repaid.
When can you expect to receive winter fuel payment?
People born on or before September 25, 1956 could be eligible for assistance of between £250 and £600 to help pay heating bills this year, known as the ‘winter fuel payment’.
This includes the pensioner cost of living payment, which is only in place for the winter of 2022 to 2023, and will be between £150 and £300.
The government says: “Most payments are made automatically in November or December. You should be paid by January 13, 2023. Check your account in November and December to make sure you’ve been paid.
You should receive the payment automatically and you don’t need to apply for it as long as you are in receipt of either the state pension or another social security benefit (you can see the all eligibility criteria here).
If these circumstances do not apply, or if you live abroad, you must make a claim, which you can do on the Government website here – the deadline for this is March 31, 2023.
You cannot get the payment if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain because the average winter temperature is higher than the warmest part of the UK.