Update – December 2022
The government has already announced that it will provide a £400 discount to park home residents to help with their energy bills.
Details of the discount and other ways in which park home residents will be supported were made available in the November guidance.
This document provides a brief update on the delivery of the payment.
How will the payment be delivered?
- The government has worked through a number of alternative delivery options and has concluded that the best way to deliver the scheme is through Local Authorities, who are best placed to process applications and carry out verification checks.
What is the process for claiming the money?
- All eligible households will be required to apply for the payment. They will be able to fill out a short form on GOV.UK with a few simple details, including their name and address. Much of this data will be verified up-front to reduce burdens on Local Authorities, who will then verify the address and administer the payment.
When can households apply ?
- The government is currently finishing and testing the application model, including verification and anti-fraud measures, to ensure that it functions as intended before it can go live.
- The scheme will open for applications in January 2023, and the government is committed to delivering the payment to households this winter.
- The government will be publishing further detail about eligibility shortly.
Why is this taking so long?
- This is a critical and complex task.
- Whilst the government understands that speed is of the essence, it must do all it can to prevent errors that could result either in households not receiving the support they need, or in a loss of public money.
When will households get the money?
- The Alternative Fuel Payment of £200 and the Energy Bill Support Scheme Alternative funding of £400 will be delivered as soon as possible in the new year.
- The exact date that an eligible household will receive support will depend on when the application is made and when the payment can be processed by the relevant Local Authority.
£650 Cost of Living payment for those on benefits
- More than 8 million households on means tested benefits will receive a payment of £650. This includes all households who receive Universal Credit, Pension Credit Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit.
- The Department of Work and Pensions will make the payment in two lump sums – the first from July, the second in the autumn. Payments from HMRC for those on Tax Credits only will follow shortly after each to ensure there are no duplicate payments. The government will make these payments directly to households across the UK.
£300 Pensioner Cost of Living Payment
- All pensioner households will receive an extra £300 to help them cover the rising cost of energy this winter. Pensioners are disproportionately impacted by higher energy costs, and many low-income pensioner households do not claim the means tested benefits they are entitled to.
- This payment will go to the over 8 million pensioner households who receive the Winter Fuel Payment. The Pensioner Cost of Living Payment will come as a top-up to annual Winter Fuel Payments in November/December. For most pensioner households, this will be paid by direct debit, is not taxable and does not affect eligibility for other benefits. The government will make these payments directly to households across the UK.
£150 Disability Cost of Living Payment
- People with disabilities will receive an extra £150 to help with the particular extra costs they face. Six million people who receive Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Scottish Disability Benefits, Armed Forces Independence Payment, Constant Attendance Allowance and War Pension Mobility Supplement will receive the support as a one off payment in September.
- These payments will be exempt from tax, will not count towards the benefit cap, and will not have any impact on existing benefit awards. The government will make these payments directly to households across the UK.