£300 DWP July cost of living payments, benefits and pensions coming next month
The Department for Work and Pensions (DWP) has announced that people who receive disability benefits will receive a one-time payment of £300. This money, which will be given on June 20, is meant to help with the increasing costs of living.
These are not the only programs that aim to assist with the current crisis of high living expenses. In addition to this payment, there was another payment of £301 earlier this year to help with the cost of living.
Fortunately, there are several assistance packages on the way to help households facing financial difficulties. Even though Rishi Sunak’s Energy Bill Support Scheme ended in March, many low-income households will receive additional support of £1,350 to help with the cost of living, reports Birmingham Live.
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Starting this spring, around eight million people who qualify for means-tested benefits, such as universal credit, pension credit, and tax credits, will receive £900 in smaller payments. Additionally, over six million people will receive a separate payment of £150. During the winter, over eight million pensioners will also receive an extra payment of £300.
The regular payments for support and pensions will keep coming as usual. These payments include universal credit, state pension credit, disability living allowance, Personal independence payment, attendance allowance, carer’s allowance, employment support allowance, income support, and jobseeker’s allowance.
Here are the payment windows that have been announced so far, with more precise dates expected later in the year:
- £301 – First cost of living payment – already issued between 25 April and 17 May (or 2 to 9 May for people on tax credits but no other low-income benefits)
- £150 – Disability payment – during summer 2023
- £300 – Second cost of living payment – during autumn 2023
- £300 – Pensioner payment – during winter 2023/4
- £299 – Third cost of living payment – during spring 2024
The Energy Price Guarantee, which limited the cost of electricity and gas bills, was especially important during the winter months. Now that we’re experiencing hotter temperatures, we’re less likely to use central heating. However, it’s still important to know what to expect when it comes to our bills.
The price guarantee was extended until June, but now that it has expired, consumers will be subject to the Energy Price Cap set by Ofgem. Ofgem has announced that starting from July, the cap will be £2,074, which is a significant decrease from the previous level of £3,280 earlier this year.
According to Ofgem, the cap is based on the average energy usage of a typical household on their supplier’s standard default tariff. They have clarified that it limits the price per energy unit and not the overall bill, which means the decrease reflects wholesale prices before being supplied to households.
Experts at Cornwall Insight predict that there will be another decrease in October, with the average annual bill expected to be £1,976. However, they anticipate an increase in January, bringing the average bill to £2,045. Cornwall Insight does not expect the prices to return to pre-pandemic levels before the end of the decade, especially considering other geopolitical incidents like the war in Ukraine, which have a negative impact on energy costs.