The third and final instalment of the government's £900 cost of living payment, worth £299, is scheduled to be paid in spring 2024 to households receiving certain means-tested benefits1. It follows a first payment of £301 made during April and May 2023 and a second payment of £300 during October and November 20231.
The £900 is paid directly into people's accounts by the Department for Work and Pensions or HMRC in three parts, and no application is needed1. Eligibility depends on receiving at least one qualifying benefit during a specific qualifying period for each payment; for the autumn payment that period was 18 August to 17 September 20231. The qualifying benefits 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. Payments should arrive in the same bank account that receives tax credits, and appear on statements under the words "HMRC COLS"1.
"The first part of the government's £900 cost of living grant (of £301) was paid during April and May 2023. The second payment of £300 is during October and November 2023 and the third payment of £299 will be in spring 2024."
Separate support sits alongside the £900. People receiving non-means-tested disability benefits should have received a £150 disability payment during summer 2023, and those who also get 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 | Period |
|---|---|---|
| First cost of living payment | £301 | April to May 2023 |
| Second cost of living payment | £300 | October to 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 wider bill context has changed. The £400 energy discount for electricity customers, the Energy Bill Support Scheme, was paid in monthly instalments between November 2022 and March 2023 and is not set to be repeated this winter1. The Energy Price Guarantee that governed bills last winter has been replaced in practice by the price cap, which Ofgem sets and changes every three months1. As of 1 October 2023, a typical household using a medium amount of energy and paying by direct debit would pay £1,874 per year, or around £156 per month1. The cap limits unit prices on standard variable tariffs and does not apply to fixed term tariffs1.
Why it matters for households
The £299 is a one-off cash transfer, not a change to the unit price a household pays, so it does not alter the underlying cost of heating a home or the standing charges attached to a supply. For a household on a standard variable tariff, the amount owed over a year is still set by usage, region, payment method and meter type, and the cap figure of £1,874 describes a typical direct debit household rather than any individual one1. The withdrawal of the £400 Energy Bill Support Scheme means the winter of 2023/24 carries no equivalent monthly credit, so the gap between the capped bill and the support received is wider than in the previous winter1. Energy independence at household level, in the sense of a home's exposure to wholesale prices and policy costs, is unchanged by the payment; what the payment does is offset part of the bill for households already receiving means-tested benefits. Households that are not on those benefits, including many on fixed term tariffs, receive neither the £900 nor the protection of the cap1.
What happens next
The spring 2024 payment of £299 has been announced but no specific payment date has been reported1. Households whose circumstances are complex, for example where a benefit application made within the qualifying period has not yet been approved, may wait longer, and a change of bank details not reported to the DWP can cause a payment to be rejected1. Missing payments can be reported to HMRC online1.