Households to start receiving £299 cost-of-living payments

Households on low incomes will start getting a £299 cost-of-living payment from Tuesday.

Payments will be made across the UK by the Department for Work and Pensions (DWP) between February 6 and 22.

It is the third of up to three payments over 2023/24, totalling up to £900, which are being paid to eligible households on means-tested benefits.

They come as part of a support package which has been helping households since autumn 2021.

Those receiving tax credits only will receive payments from HM Revenue and Customs (HMRC) between February 16 and 22.

The payments will be sent out automatically and recipients do not need to apply to receive them.

Mel Stride, Secretary of State for Work and Pensions, said: “The economy has turned a corner, and with inflation falling we are providing millions of the most vulnerable households with another significant cash boost.”

UK government minister for Scotland John Lamont said: “This crucial cost-of-living payment will benefit more than 680,000 people across Scotland.”

Welsh Secretary David TC Davies said: “Over 400,000 households in Wales will be receiving this payment directly into their bank accounts to help them with the cost of living.”

The UK government said it will continue to support vulnerable people with the cost of living from April by uprating benefits in line with inflation by 6.7%.

It will also maintain the triple lock, which protects pensions value from inflation, and increase the state pension by 8.5%, among other measures.

According to figures released by the Insolvency Service last week, the number of people needing breathing space from their debts jumped by 25% in 2023, compared with the previous year.

This is a scheme which gives someone in debt protection from their creditors - meaning they must stop legal action against a person while the breathing space is in place.

Across England and Wales, there were 88,390 registered breathing spaces in 2023, comprised of 86,928 standard and 1,462 mental health breathing space registrations, the Insolvency Service said.

A standard breathing space is available to people with problem debt and gives legal protections from creditor action for up to 60 days.

A mental health crisis breathing space is available to someone who is receiving mental health crisis treatment. It lasts as long as the person’s mental health crisis treatment, plus 30 days.

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know...