COST OF LIVING

All the benefits and cash boosts to come in March 2024 as Cost of Living payments end

First published on Wednesday 21 February 2024

UK bank notes / mum and child

Families could be due extra help in the form of benefit payments, cash schemes and assistance towards bills over the next month

Families with high energy costs and those facing increasing costs of living could see some extra help due to them next month.

While the Cost of Living payments are set to end for good tomorrow (22 February 2024), there is still some help available for low-income households in the form of grants towards energy bills and the Household Support Fund that could still come in March.

And, with Easter coming up at the end of the month, families could see a change to how and when their benefits are paid.

Here's everything you need to know about March benefit payments, help towards your energy bills and more.

Benefits paid early

There's likely to be a change to when you get your benefit payments in March, because of the Easter break.

Families are paid DWP benefits such as Universal Credit monthly, while other benefits – such as attendance allowance and disability living allowance – are paid every four weeks.

Other benefits including tax credits, which are paid by HMRC, and child benefit are usually paid every four weeks, while maternity allowance is paid either every two or four weeks.

Depending on when you're usually paid your benefit, you could see a change to when you get it next month.

Both Good Friday – which falls on 29 March this year – and Easter Monday – which is 1 April this year – are bank holidays, meaning no payments can be made on either of these days.

If your Universal Credit (or other benefit payment) usually falls on the 29th, or the 1st, then you'll likely be paid early.

Instead, you should expect your payment on the last working day before that – Thursday 28 March.

If you're due to be paid on any other day (and this does not fall on a bank holiday) then you should expect your payment as normal.

Benefits that could be affected include:

  • Universal Credit
  • State Pension
  • Pension Credit
  • Disability Living Allowance
  • Personal Independence Payment
  • Attendance Allowance
  • Carer’s Allowance
  • Employment Support Allowance
  • Income Support
  • Jobseeker’s Allowance

Household Support Fund

The government's Household Support Fund (HSF) is set to end for good at the end of March – with households urged to act now to apply for any extra help they may be eligible for.

The scheme runs across England and is an £842m cash pot given to local councils to help low-income families in their area.

Each council can allocate their portion of the fund however they see fit. Some councils are giving cash payments to eligible residents while others are issuing supermarket vouchers or financial grants.

The latest schemes include a £100 payment for some London families and £500 payments on a first-come, first-served basis for residents in South Ribble, Lancashire.

But there are similar schemes running across the country. You can find out more about what's available in your area here.

Warm Home Discount

The Warm Home Discount is a one-off payment worth £150 that's taken off your bills or given to you in the form of a voucher if you're on a prepayment meter.

To get it, you'll firstly need to check whether or not your supplier is signed up to the scheme (most major suppliers are), but if you qualify, you should get the payment automatically.

The discount is usually applied to your energy bills between October 2023 and March 2024, so while some have already received the help, others could still get it.

Eligible households should have received a letter telling them they qualify in January 2024.

The help is for anyone who has a low income and has high energy costs, or who gets the Guarantee Credit element of Pension Credit (core group one).

Others on certain means-tested benefits are also eligible, as part of 'core group two'.

The qualifying means-tested benefits are:

  • Housing Benefit
  • income-related Employment and Support Allowance (ESA)
  • income-based Jobseeker’s Allowance (JSA)
  • Income Support
  • the ‘Savings Credit’ part of Pension Credit
  • Universal Credit

You could also qualify if your household income falls below a certain threshold and you get either:

  • Child Tax Credit
  • Working Tax Credit

Cold Weather Payments

Low-income households could get help in the form of the government's Cold Weather Payments – given to anyone who experiences colder than normal temperatures in their area over a seven-day period.

Eligible households will get a payment of £25 for every 7 days of very cold weather (0°C or below) between 1 November 2023 and 31 March 2024.

You'll need to be claiming certain benefits to get the help including:

  • Pension Credit
  • Income Support
  • Income-based Jobseeker’s Allowance
  • Income-related Employment and Support Allowance
  • Universal Credit
  • Support for Mortgage Interest (SMI)

Cold Weather Payments will not affect your other benefits.

Families in Scotland may be able to get the Winter Heating Payment from the Scottish Government instead.

Winter Fuel Payment

Households with someone who is over state pension age (66 years old) and who lives in the UK could get extra help towards their winter fuel bills through the government's Winter Fuel Payment.

And it could be topped up to £600 for those on lower incomes.

You can get a Winter Fuel Payment if you were born before 25 September 1957. Depending on your circumstances, you'll get between £250 and £600.

This could include an extra 'Pensioner Cost of Living Payment' that's worth between £150 and £300. Eligible households will be due the cash in winter 2023 to 2024, which means some have already got it.

If eligible, you should have already received a letter in October or November telling you how much you'll get and when you'll get it.

Energy bill help

Another cash boost for families that's due to close at the end of March is the British Gas Energy Support Fund, which offers cash grants of up to £2,000 to help struggling British Gas customers who've got into debt with their energy bills.

However, there's also some help available for non British Gas customers (provided their own energy suppliers don't offer a similar scheme) through The British Gas Energy Trust's Individual and Families Fund.

This is a grant for any household, irrespective of whether they are British Gas customers, who find themselves in energy debt – either on their account or on their prepayment meter.

The scheme will likely close at the end of March 2024, unless funds are used up sooner.

You'll have to be facing fuel poverty and have fallen behind on your energy bills to qualify for the help, and you'll also need to have contacted your own energy supplier to see if they can help you first, as well as Citizens Advice or another free money advice service.

Benefits to rise in April

There's good news for families who claim benefits coming in April too, as all benefits will increase by 6.7% from 8 April, in line with September 2023's inflation rate.

Households who claim Child Benefit will see their payments rise by around £137.80 extra a year if they have two children, while those who claim Universal Credit will see an increase of almost £500 a year.

Chancellor Jeremy Hunt explained, last year: 'This will be an average increase of £470 for 5.5 million households next year'.

No more Cost of Living payments

There's not likely to be any more Cost of Living payments and no more announcements have been made about the government scheme. The last payments of the third Cost of Living payment are set to hit bank accounts tomorrow (22 February 2024) with most people now having had their £299 help.

The government has, instead, announced plans to help households into work from now on.

Secretary of State for Work and Pensions, Mel Stride, said: 'We will always protect the most vulnerable, while ensuring fairness for the taxpayer.

'We know that the best way to secure long-term financial security is through employment, so we’re rolling out the next generation of welfare reforms to put thousands more people on a pathway off benefits and into work.'

Mims Davies, MP and DWP representative at the DWP confirmed: 'There are currently no plans to extend the cost of living payments beyond the spring.

She said that this was because the rate of inflation had slowed and the government would be increasing benefits to help low-income households.

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