Cost of living payment UK: support packages explained

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The government has launched several schemes aimed at helping UK households weather the cost of living crisis

Ofgem’s energy price cap is likely to rise sharply again in both October and January, while inflation could peak at 13.3%, according to a Bank of England forecast.

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So what measures has the government announced?

Pensioners will receive £300 later in 2022, Rishi Sunak has announced (Image: PA)

What cost of living regulations are announced?

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He said at the time that he had eased public purses because high inflation was putting people across the UK in “severe distress”.

Mr Sunak told MPs: “I know they are worried, I know people are struggling,” adding: “[the government] will not stand idly by while some in our country risk being thrown back so far that they may never recover.”

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The Chancellor also insisted that skyrocketing inflation could be brought under control.

“It is not an abstract force beyond our reach. It may take time, but we have the tools we need and the determination it takes to bring inflation down,” Mr Sunak said.

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Rishi Sunak insisted he could get inflation under control again (Image: PA)

Rishi Sunak said the cost-of-living support would be funded through a mix of new taxes and government borrowing.

The bulk of the funds for spending – around £10bn – is said to come from government loans.

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(Photo by BEN STANSALL/AFP via Getty Images)

What living expenses support has been announced?

The main announcement from Rishi Sunak was that a previously announced £200 energy bill credit, due to be paid in October, would now become a one-off £400 energy bill rebate.

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The first payments of £66 will be made in October and November 2022, with £67 per month being paid in early 2023.

You don’t have to do anything to receive these payments as they are automatically applied by your energy supplier.

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Those receiving disability benefits are set to receive £150 in living expenses (Image: PA)

Other measures announced by the government were:

  • £150 for people on disability pension – It is to be paid out by September with the usual pension payment.

A further £500m would be given to councils in England as part of the existing Budget Support Fund and its deadline would be extended to March 2023.

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This fund is used by local authorities to distribute money or essential items to the poorest and most vulnerable people in their area.

Overall, that means the poorest eight million households will receive at least £1,200 in extra government support in 2022, according to the Treasury.

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Will government cost of living support be available across the UK?

Most of Rishi Sunak’s announcements are published in England, Scotland and Wales.

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However, the Budget Support Fund will be reserved for England only, with funds distributed to the devolved nations as calculated by Barnett’s formula.

The Government says it will adjust energy bill support for people in Northern Ireland.

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Sinn Fein’s finance minister at Stormont, Conor Murphy, said: “The extra £14m that we will receive from the Household Support Fund cannot be allocated without an executive.

“This now means there is a total of £435m available that cannot be allocated to support families, workers and businesses with the cost of living and to support public services, particularly our health service.”

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DUP MLA Jonathan Buckley said his party “wants to see devolved government in operation” but insisted it must be “on a sustainable, long-term basis” in order to do so.

Additional reporting by PA

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