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Wednesday, Dec 07, 2022

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.

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