London Daily

Focus on the big picture.
Monday, Mar 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
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
AI-Generated Singer Becomes Viral Voice for Iranians With New Anthem
London Private Club Founder Plans Exclusive Palm Beach Venue Near Trump’s Mar-a-Lago
Ed Davey Urges Britain to Build Fully Independent Nuclear Missile Capability
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
US Treasury Links British Polo Patrons to Alleged Venezuelan Oil Proceeds Laundering Scheme
Hundreds Gather in London Despite Ban on Annual Pro-Palestinian March
Two Dead and Multiple Students Seriously Ill After Invasive Meningitis Outbreak at UK University
UK Considers Deploying Ships and Mine-Hunting Drones to Reopen Strait of Hormuz
Starmer and Trump Discuss Urgent Need to Reopen Strait of Hormuz Amid Escalating Iran Conflict
Prince Harry and Meghan Markle’s Planned Australia Visit Draws Mixed Reaction From Local Communities
Trump Calls on France and UK to Help Safeguard Strait of Hormuz Shipping Route
Boris Johnson Labels Bitcoin a ‘Ponzi Scheme’, Sparking Debate in Crypto World
UK Considers Targeted Aid for Vulnerable Households as Energy Costs Rise
Stellantis Urges Immediate Review of UK Electric Vehicle Sales Targets
Home Office Reverses Course to Allow Some Dual Nationals to Enter UK Using EU Passports
Reform UK Proposes Replacing Top Civil Servants With Officials Aligned to Government Agenda
Netflix Adds Critically Acclaimed ‘Best Film of 2025’ With Perfect Rotten Tomatoes Score
‘The Sums Don’t Add Up’: UK Farmers Hit by Soaring Costs as Iran War Disrupts Global Supplies
Confidential UK Biobank Health Records Found Online After Researchers Accidentally Expose Data
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
×