London Daily

Focus on the big picture.
Monday, Mar 23, 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
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
UK Minister Says No Evidence Iran Can Strike Europe Despite Heightened Warnings
British-Iranians Voice Safety Concerns to Authorities as Regional Conflict Intensifies
Confirmed Meningitis Cases Linked to Kent Outbreak Revised Down to Twenty
UK Government Sees No Evidence Iran Can Strike London Amid Rising Regional Tensions
Debate Grows Over Recognition of Indigenous Cultural Icons in the United Kingdom
Iran Missile Launch Toward Diego Garcia Raises Questions After Failed Strike on US–UK Base
Donald Trump Amplifies Viral Satirical Clip Highlighting UK–US Political Dynamics
UK Satirical Show Draws Attention with Sketch Referencing Trump and Prince Andrew
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
Northern Lights Expected Over UK Skies Tonight Amid Strong Solar Activity
UK Condemns Iran Missile Strike and Warns Against Threats to British Personnel
UK Warns of Global Flight Disruptions as Iran Conflict Escalates Under Trump’s Leadership
UK Condemns Iran After Missile Strike Targets Strategic Diego Garcia Base
Deadly Meningitis Outbreak in UK Reinforces Urgency of Vaccination Campaigns
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
UK Rules Out Cyprus Base Role in Joint US Self-Defence Framework
UK Ends Hereditary Peerage Rights in Parliament in Historic Constitutional Reform
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
×