London Daily

Focus on the big picture.
Wednesday, Sep 16, 2026

Cost of living: how the payments affect people in various scenarios

Cost of living: how the payments affect people in various scenarios

From low-income families to pensioners, we look at what the payments mean depending on circumstances

The government has responded to the cost of living crisis with the announcement of a package of measures. Here we look at the impact on a range of different people.

Family with three children living in a council tax band D property


Like everyone else they will receive the chancellor’s £400 payment in October. They have already received the £150 council tax rebate, paid in April, so by the end of the year will have had £550 worth of government support.

Low-income pensioner living in a band C property


She will get the £300 pensioner cost of living payment which will come with her winter fuel payment in November or December. Because she receives pension credit she will also get the £650 one-off cost of living payment linked to means-tested benefits (made in two parts, one in July and one in the autumn).

Her band C home means she was entitled to the £150 council tax rebate in April. She will also receive the £400 energy discount in October.

She qualifies for the warm home discount because she is on pension credit. That will be worth £150 next winter, up from £140 last year.

Pensioner living in a band E property


This pensioner receives attendance allowance to help with their care, so they are entitled to the £150 disability cost of living payment, as well as the £300 pensioner payment.

They did not receive a council tax rebate, but will get £400 off energy bills from October.

Low-income family with two children living in a band A property


They will get £400 off their energy bill in October. They claim working tax credit so qualify for the one-off cost of living payment linked to mean-tested benefits of £650.

They have already qualified for the £150 council tax rebate. They currently don’t get the warm home discount but might do next winter as eligibility is to be expanded.

Single parent with a disability in a band C property


He does not receive any means-tested benefits so does not qualify for the £650 payment associated with those, but will get the £150 disability cost of living payment.

The £400 discount in energy bills from October and the £150 council tax rebate will partially offset his energy bill rise.

Well-off family living in a band G home


This family will get the £400 reduction from their energy bills. They did not qualify for the £150 council tax rebate, and won’t get any of the other payments.

Newsletter

Related Articles

0:00
0:00
Close
UK Health Unions Warn of Staffing Pressures as Public and Private Pay Growth Diverges
Rockstar Games Faces Tribunal Claims From 23 Former Grand Theft Auto VI Developers
UK Treasury Faces Tighter Budget Constraints as Borrowing Costs and Pension Spending Rise
Prime Minister Andy Burnham Sets Out Ten-Year Plan for Greater Public Oversight of Utilities
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
Scotland, Wales and Northern Ireland Leaders Coordinate Push for UK Constitutional Change
Police Tighten Public-Order Measures After Anti-Immigration Protests in Dover and Portsmouth
UK Ministers Pressed for Answers After US Diplomat Accused of Child Abuse Images Leaves Britain
Jaguar Land Rover Pursues NATO Defense Contracts for Defender Vehicles
British Service Member Dies in Road Accident While Deployed in Ukraine
George Osborne Calls for Britain to Rejoin EU Customs Union
Anthropic Chief Dario Amodei Urges Faster UK Action on Advanced AI Risks
UK State Pension Set for 3.9% Rise Under Triple Lock
UK Labour Market Cools as Payrolled Employment Continues to Decline
Reform UK’s £72 Million in Donations Faces Scrutiny Under Proposed Retrospective Funding Rules
UK Doctors Warn Expanded Pharmacy First Scheme Could Put Patients at Risk
British Airlines Cut Short-Haul Capacity as Jet Fuel Costs Rise
UK News Publishers Forecast 40% Search Traffic Drop as AI Overviews Expand
Axel Springer Wins Approval for £575 Million Daily Telegraph Acquisition
London Mayor Sadiq Khan Opposes Heathrow Third Runway Over Climate Targets
Scotland, Wales and Northern Ireland Leaders Hold Summit Seeking Greater Autonomy
UK Energy Price Cap Set to Rise to £1,723 in October
UK Treasury Warns Middle East Conflict Is Threatening Economic Growth
Labour Moves to Retrospectively Cap Overseas Political Donations After Reform UK Funding Surge
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
UK Parliament Considers Sovereign Grant Reform Setting Royal Funding at £99.9 Million
Trades Union Congress Calls for Income-Based Energy Tariff Funded by Higher Bank Levy
UK Prime Minister Rejects Second Scottish Independence Referendum
House of Lords Begins Scrutiny of Bill to Lower UK Voting Age to 16
Anthropic Says Claude Was Exploited in Weapons-Related and State-Linked Cyber Activity
Institute of Directors Urges UK Government to Avoid Business Tax Increases in Autumn Budget
Rising Gilt Yields Cut UK Fiscal Headroom to About £13 Billion Ahead of Budget
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
UK Government Promises Clearer Student Loan Guidance After Repayment Backlash
Charities Warn Unpaid Carers May Die Before Receiving Government Compensation
Dover Unrest Prompts Review of UK Counter-Extremism Strategy
Celtic Summit Leaders Reassert Right to Pursue Independence From UK
NHS Records Busiest Summer on Record Amid Severe Heatwaves
Harrods Faces Potential £150 Million Compensation Bill Over Al Fayed Abuse Claims
UK Parliament Opens Debate on Landmark Assisted Dying Legislation
Metropolitan Police Investigate Reform UK Over Alleged Foreign Electoral Donations
UK Economy Expands 0.4% in July as AI Investment Boosts Activity
Bank of England Signals Caution on Rates as Inflation Pressures Persist
Tesco Alerts Police After Scammers Use Its Branding in AI-Generated Fraud
×