Cost of living payments

Photo of money -- notes and coins.

The government will make extra payments to people getting means-tested benefits, tax credits, and disability benefits (including DLA for children), under pressure to respond to the cost of living crisis. We are still campaigning for benefit levels to be increased, not just these one-off payments, and for benefit rights for all, regardless of immigration status (abolition of No Recourse to Public Funds).

And we are campaigning against care charges for homecare taken from our disability benefits. Unwaged disabled people pay a bigger slice of our income than disabled people in waged work. Councils take up to a third of our benefit income, and mainly ignore our extra costs of disability. Higher charges are still being imposed on us despite the cost of living crisis!

It’s not clear whether Councils will count the government’s Cost of living payments as part of your income for the charges financial assessment — how disgusting if they do!

Cost of living payments

People getting low-income means-tested benefits will get a cost of living payment of £650. This will be split into two instalments of £326 and £324. The first instalment will be paid between 14 July to end of July 2022. The second instalment in autumn 2022. This will be paid the usual way you get your benefit, there is no need to make a claim.

The payment won’t be taxed, does not reduce Universal Credit or other benefit amounts, and the benefit cap doesn’t apply if it takes you over the limit. It will be paid to people in low-waged work, as well as unwaged people. Couples with a joint claim will only get £650 between them, not each.

Disability carers will only get the cost of living payment in their own right if they are on a means-tested benefit such as Universal Credit carer element, Income Support carer premium, or ESA.

Some rules apply, more info here.

Disability cost of living payment

According to government information, you get a lump sum payment of £150 if you’re getting any of these disability benefits:

  • Attendance Allowance
  • Constant Attendance Allowance
  • Disability Living Allowance for adults
  • Disability Living Allowance for children
  • Personal Independence Payment
  • Adult Disability Payment (in Scotland)
  • Child Disability Payment (in Scotland)
  • Armed Forces Independence Payment
  • War Pension Mobility Supplement

More info here.

If you get both a low-income benefit, and a disability benefit such as PIP which is not means-tested, you should get BOTH types of payment, cost of living AND disability.

Council Tax rebate for electricity and gas costs

The £150 Council Tax rebate (refund) towards electricity and gas costs, is separate and is handled by your Council.

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