Thousands of Welsh households to get cost-of-living payment, but 'it's not enough' says charity

• ITV's Marina Jenkins spoke to Dr Steffan Evans from the Bevan Foundation

Picture credit: PA Images

With thousands of Welsh households set to receive a £300 cost of living payment, a leading charity says "the support is worth less than what it was over the past few years".

One in seven people most often don't have essentials, according to the Bevan Foundation.

"People's financial resilience has been affected," says its Head of Policy (Poverty), Dr Steffan Evans.

He said: "Any support is going to make a difference. People who are going to receive this payment over the next few days will certainly be grateful."

The announcement made on Tuesday 31 October 2023 will result in 422,000 households across Wales receiving a cost-of-living payment from the UK government.

The scheme was introduced last year and has seen millions of households across the UK receiving a number of instalments from the Department for Work and Pensions (DWP).

Dr Steffan Evans added: "Given the last winter, we were all having £66 off of our energy costs. It was a huge support from the Welsh government and the UK government as well.

"That extra support is not gonna be here this year. Yes, inflation is going down but the cost of living is still going up. But the income and the benefit system is not going up as quickly.

Dr Evans is concerned that "this could become the new normal" and says "there must be investment in long-term solutions to poverty".

He said: "We've very much been in crisis mode over the last few years. First with the pandemic and now with the cost of living crisis.

"1 in 7 people often don't have essentials in the cost of living crisis. That's not a figure we can live with."

People who are eligible will get their second round of cost-of-living payments from October 31.

This is the second of three payments for those eligible on means-tested benefits, which takes the total amount from 2023 to 2024 to £900. Although some people could receive up to £1,350.  

Housing association trade body Community Housing Cymru also welcomed the payments but emphasised the need for more to be done for social housing tenants.

Hayley MacNamara from the organisation said: “This winter will be worse for many people - but particularly for those living in housing association homes who continue to be among the hardest hit by the cost of living crisis.“People living in social housing are struggling just to keep their heads above water, with many unable to buy essentials and heat their homes as the weather gets colder.“While these payments are welcome, this won’t bridge the financial shortfall currently facing tenants. More must be done to ensure they get the urgent financial support they need, and don’t have to make more heart-breaking choices this winter.”

Who is eligible for this scheme?

In order to be eligible for the Cost of Living Payment scheme, a person needs to have been entitled to a payment for a qualifying benefit between 18 August 2023 and 17 September 2023.

Or the person can be qualified for a payment for an assessment period, ending between these dates.

What are the eligible benefits?

The eligible benefits are:  

• Universal Credit

• Pension Credit 

• Income-based Jobseekers Allowance 

• Income-related Employment and Support Allowance 

• Income Support 

• Working Tax Credit 

• Child Tax Credit  

Mel Stride, Secretary of State for Work and Pensions, said: "Tackling inflation is the best way to boost people’s incomes, but as we work to halve it, we are protecting the most vulnerable households from high prices with this latest Cost of Living payment.

"Work Coaches are based in Jobcentres across Wales and are on hand to help people find work or enhance their skills.

The secretary of state is encouraging those who "want to strengthen their finances" and "unleash the benefits of work" to contact their local Jobcentre for help.

With inflation falling and wages growing, Chancellor of the Exchequer Jeremy Hunt says "It's good news" but he acknowledges "prices are still too high".

He said: "Our plan to halve inflation this year is the best thing we can do to help people, with this £300 payment offering a timely boost before Christmas."

Welsh Secretary, David TC Davies, said: "We know that the cost of living is continuing to have an impact on people which is why the UK Government is supporting over 420,000 low-income households in Wales with this payment of £300, as part of a broader package of support.

"At the same time, we are working hard to reduce inflation, which will help everyone in Wales and across the UK with their finances."

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