The second instalment of the government's £900 cost of living payment, worth £300, was paid to eligible households during October and November 20231. The money went directly into accounts from the Department for Work and Pensions (DWP) or HMRC, and recipients did not need to apply1.
The £900 is split across three payments. The first, of £301, was paid during April and May 2023, the second, of £300, during October and November 2023, and the third, of £299, is due in spring 20241. Eligibility depends on receiving certain means-tested benefits, including Universal Credit, tax credits, pension credit and other means-tested benefits1. For the autumn payment, claimants had to be entitled to at least one qualifying benefit during a qualifying period running from 18 August to 17 September 20231. The qualifying benefits listed are Universal Credit, Working Tax Credit, Pension Credit, Child Tax Credit, income-based Jobseeker's Allowance, income-related Employment and Support Allowance and Income Support1.
"You don't need to apply for the payments, and they should be automatically paid into the same bank account that you receive your tax credits into"
Payments appear on bank statements under the reference "HMRC COLS"1. Households whose circumstances are more complex, for example where a benefit application made within the qualifying period has not yet been approved, may wait longer, and a payment can be rejected if bank details have changed without the DWP being told1. Missing payments can be reported to HMRC online1.
Separate support runs alongside the £900. People receiving non-means-tested disability benefits should have received a £150 disability payment during summer 2023, and those who also receive means-tested benefits can receive both, bringing the total additional payment in 2023/24 to £1,0501. Pensioners receiving the Winter Fuel Payment should get £150 or £300 during winter 2023/24, with eligibility requiring a birth date on or before 25 September 19571.
| Payment | Amount | Timing |
|---|---|---|
| First cost of living payment | £301 | April and May 2023 |
| Second cost of living payment | £300 | October and November 2023 |
| Third cost of living payment | £299 | Spring 2024 |
| Disability payment | £150 | Summer 2023 |
| Winter Fuel Payment | £150 or £300 | Winter 2023/24 |
The energy price cap stood at a level meaning a typical household using a medium amount of energy and paying by direct debit would pay £1,874 per year, or around £156 per month, as of 1 October 20231. The £400 energy discount for electricity customers, paid in monthly instalments between November 2022 and March 2023, is not set to be repeated this winter1. The price cap limits unit prices for customers on standard variable tariffs and does not apply to those on fixed term tariffs, and Ofgem sets its level and changes it every three months1.
Why it matters for households
The £300 payment is a direct cash transfer rather than a reduction in unit prices, so it offsets a household's bill total without changing what a unit of gas or electricity costs. For a home on a standard variable tariff, the price cap continues to set the maximum unit rate, but the headline figure of £1,834 is based on a typical household using a medium amount of gas and electricity and paying by direct debit, so what an individual home pays depends on its own usage, location, payment method and meter type1. The absence of a repeat of the £400 energy discount means the support arriving this winter is narrower in reach than last winter's, being tied to benefit receipt rather than to electricity accounts generally1. For households that qualify, the payments reduce the amount of income committed to energy, which affects how much remains for other essentials; for those that do not, the unit price set by the cap is the main determinant of the bill. Further help referenced includes the Household Support Fund, administered by local councils with differing eligibility criteria, the Warm Home Discount, which gives £150 off a bill for those receiving the guarantee element of Pension Credit and others meeting supplier criteria, and the Cold Weather Payment, paid when temperatures are below zero for seven days in a row to those on qualifying benefits1.
What happens next
The third cost of living payment, of £299, is due in spring 20241. Winter Fuel Payments of £150 or £300 are due during winter 2023/241. The price cap is reviewed every three months by Ofgem1.