Millions of Brits could get an extra £900 Cost of Living payment under new plan

Since the cost of living crisis started, the government has put in place benefits to help those struggling the most. However, some believe that the government isn’t doing enough to help those who are most vulnerable.

The Department for Work and Pensions (DWP) could be handing out some extra cash this winter to millions of households that are struggling. This new plan is being considered just before Jeremy Hunt plans to give his Autumn Statement.

If the plan is to go ahead, this extra payment would be given to those on Personal Independence Payment (PIP) and Disability Living Allowance claimants as well as carers. Here’s everything you need to know.

The government isn’t doing enough

As per Echo, those who are on PIP and Disability Living Allowance have only received a one-off sum of £150, which they received between June 20 and July 4. Moreover, those who may be claiming other benefits were not entitled to the Cost of Living package.

As a result, the National Energy Action (NEA) has urged the government to help vulnerable and low-income households. They have gone as far as to create a list of priorities to give to the government.

NEA stated in a report, as per Echo:

While the provision of cost-of-living income supplements will help many struggling households in the remainder of the financial year (2023-24), key gaps remain, and we believe further urgent actions are needed to support some of the most vulnerable people who are at most risk of needless death and cold-related morbidity this winter.

NEA notes that carers are those that often forgotten about when it comes to benefits despite them being in financial difficulty due to the fact they work less to care for a loved one.

Carers have consistently missed out on support despite often being in financially difficult situations due to their reduced earning potential and diminished opportunities for higher level learning and training. NEA would like to see all carers receive the full £900 cost of living support, regardless of whether they also receive means-tested benefits.

Where would the extra money come from? £900

According to NEA, the government could use the savings from energy schemes to fund the extra £900 Cost of Living payment to those most vulnerable this winter. The NEA said:

Given the pressures on the economy, the fiscal situation is still extremely tight, and the prevailing economic view in Government continues to be that there is a need to maintain a sense of frugality when it comes to new spending. NEA recognises these constraints, particularly when it comes to providing further universal energy-related support like last winter.

They also added that the government has a tendency to underspend for helping with energy schemes:

However, NEA notes that there have been significant underspends on related energy schemes which could be deployed to provide targeted energy bill support through existing mechanisms this winter to support low-income and vulnerable households.

NEA pointed out that Ofgem's price cap is lower than the government's Energy Price Guarantee, which has freed up over £10 billion.

According to Echo, the DWP is looking into its current cost of living payment to see if more help is needed. The DWP has said they expect to hear more once Jeremy Hunt delivers his Autumn Statement on November 22.

Read more:

⋙ Universal Credit and other DWP benefits to be paid early in December, here's when you can expect them

⋙ Millions could get extra £3,500 for heating bills this winter, check if you’re eligible

⋙ Pensioners could be eligible for an extra £76 a month, check if you’re eligible

Sources used:

Echo: ‘DWP could give extra £900 Cost of Living payment to millions under new plan’