The UK Government has announced a substantial Cost of Living support package, set to benefit around 8 million eligible households across the nation. In February, these households will receive a £299 Cost of Living Payment, marking the government’s commitment to supporting those in need amid economic challenges.
The payment, scheduled between Tuesday, 6 February, and Thursday, 22 February, forms part of a broader strategy following the Autumn Statement. This strategy aims to provide tax relief for hardworking families and additional support for the most vulnerable segments of society. It represents the government’s pivot towards an economy characterized by reduced reliance on high spending and borrowing.
Key aspects of the support package include:
- Uprating of benefits by 6.7%.
- An 8.5% increase in the state pension.
- A £7 billion boost to the Local Housing Allowance.
This financial assistance is part of a £104 billion commitment made in the Autumn Statement, intended to support the cost of living from 2022 to 2025, averaging around £3,700 per household.
Alongside these measures, the Department for Work and Pensions (DWP) is rolling out next-generation welfare reforms, focusing on unprecedented employment and health support. The Government’s £2.5 billion Back to Work Plan aims to assist over a million people with disabilities, health conditions, or those long-term unemployed. A new initiative, the Chance to Work Guarantee, is designed to remove work barriers for millions of claimants.
Mel Stride, Secretary of State for Work and Pensions, emphasized the government’s dedication to easing cost of living pressures while promoting long-term financial security through employment. The upcoming welfare reforms will guide thousands off benefits and into the workforce.
Jeremy Hunt, Chancellor of the Exchequer, acknowledged the ongoing challenges posed by inflation and the importance of these payments for vulnerable families. He highlighted the Back to Work Plan’s role in fostering employment and economic growth.
The £299 payment will be automatically processed by the DWP and HM Revenue and Customs, requiring no action from eligible recipients. Furthermore, the DWP urges low-income pensioners not currently receiving Pension Credit to check their eligibility, as they might still qualify for the February payment.
The government’s commitment extends to the Local Housing Allowance increase, set to take effect in April 2024. This £7 billion investment over five years is projected to benefit around 1.6 million households, making them approximately £800 a year better off.
