New energy payments announced by Chancellor

The Chancellor has just announced an extensive package to assist households struggling with the cost-of-living crisis.

This package will affect all households to some extent, dependent on circumstances, and some may be eligible for multiple payments.

The controversial £200 energy loan that was to be applied to all household electric bills in the autumn has been cancelled and replaced with a £400 non-repayable grant.

The Household Support Fund has also been increased to £500 million for anyone struggling to apply to their local councils for assistance.

  • Low Income Payment: Benefit claimants will receive a £650 payment, made by the DWP direct to their bank accounts in 2 lump sum payments in July and later in the Autumn.
  • Pensioner Payment: Pensioners who receive the Winter Fuel Payment are eligible for a £300 payment.
  • Disability Payment: Disabled people who receive non-means-tested benefits such as DLA, PIP or Attendance Allowance will receive a £150 one off payment.

What does this mean for me?

Help with cost of living will apply to the whole of the UK. The maximum payment that you could receive if on means-tested benefits and PIP/DLA/Attendance Allowance (non-means tested) would be: 

  • £400 (discount on all domestic energy bills (paid in October): The Energy Bills Support Scheme),
  • + £650 (means-tested benefits (Universal Credit, Tax Credits, Pension Credit and means-tested legacy benefits such as Income Related ESA) with a first payment in July, the second in the Autumn), 
  • + £150 (non-means tested disability benefits (PIP/DLA paid by September), 
  • = £1200 
  • +£300 if you are a pensioner (paid as part of Winter Fuel Allowance in November/December).
  • And, you should have received – or will soon – a £150 rebate in Council Tax as part of the help being provided to cope with cost of living increases.
  • Please read the Government's press release below to learn more. Payments will be made automatically to your bank account. 
  • Housing Benefit does not qualify you for additional payments beyond the £400 discount that all households will receive. If you only receive Housing Benefit with no additional means-tested benefit then consider applying for the Household Support Fund which is administered by your local council.


Ella Smith 
Welfare Benefits Adviser 

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