Cost of living announcement - Payments for Pensioners and those with disabilities, Energy payments of £400, Windfall tax & more

Posted 26th May 2022
Update 1
Updated further
Cost of living announcement, annoucement below. if i've missed anything, please let me know and still checking over things

Does it help you and your family?

Energy firms to be taxed via a energy profit (windfall tax) levy: 25% tax but drops when energy prices return to 'normal' levels (whatever that may be)

Cost of living:


Those on the lowest incomes: 8 million people, one off payment of £650 on Universal Credit, Tax Credits, Pension Credit and legacy benefits

No need to pay back in two lots and split in two payments, first in July and second payment in August straight into bank accounts.


8 million households, who claim the Winter Fuel Payment, will get £300, One-off disability cost of living payment of £150

More than eight million of the lowest income households will receive a £650 one-off payment. It will apply to households on Universal Credit, Tax Credits, Pension Credit and legacy benefits.

''More than eight million of the lowest income households will receive a £650 one-off payment. It will apply to households on Universal Credit, Tax Credits, Pension Credit and legacy benefits.

Separate one-off payments of £300 will go to pensioners and £150 for those receiving disability benefits.''

more info

What is the winter fuel payment?

The Winter Fuel Payment, which is usually referred to as a “heating allowance”, is an annual tax-free payment from the Department of Work and Pensions.

Anyone who is eligible can receive between £100-300 each year.

  • People will be eligible for this payment if they are over State Pension age (aged 66 or above) between 19 – 25 September 2022. There are certain circumstances where an individual above State Pension age does not qualify for the Winter Fuel Payment which can be found here on […ity]'

When will the extra £300 be paid?

The extra £300 winter fuel allowance payment will be with pensioners by Autumn 2022.

Last winter, most winter fuel payments were made automatically between November and December, with the last lump sums coming in 14 January 2022 at the very latest.

Who qualifies for the winter fuel payment?

The winter fuel payment is available to to those born on or before 26 September 1955.

According to the government website, you must have:

  • lived in the UK for at least one day during the week of 20 to 26 September 2021 – this is called the ‘qualifying week’
If you did not live in the UK during the qualifying week, you might still get the payment if both the following apply:

  • you live in Switzerland or a European Economic Area (EEA) country
  • you have a genuine and sufficient link to the UK – this can include having lived or worked in the UK, and having family in the UK
You don’t typically have to apply for the winter fuel payment and if you are eligible. You should receive the money automically.

However, if you have not had the payment before, you only need to claim if any of the following apply:

  • you do not get benefits or a State Pension
  • you only get Housing Benefit, Council Tax Reduction, Child Benefit or Universal Credit
  • you get benefits or a State Pension but live in Switzerland or an EEA country

Source iNews

Household support fund


Household support fund extended to half a billion pounds from October

Information for local councils on the Household Support Fund to support vulnerable households in England.



All households to have their £200 energy rebate, which was to be be paid back now cancelled (no need to be paid back), it'll now be doubled to £400 and no need to be paid back. Bascially bills will have £400 knocked off come October 2022.

Council Tax:


Already announced a few months back but 4 out of 5 households entitled to £150, which is either taken off your Council Tax bill or you'll get it into your bank account.

If you've not had it yet or unsure, check with your local Council. Lots of info on the hotukdeals thread here

  • The majority of these measures will apply UK-wide except the Household Support Fund, which is England only. The Devolved Governments will receive Barnett funding as a result of this measure. The Energy Bill Support Scheme is only in Great Britain but we will deliver equivalent support to people in Northern Ireland.
  • These new cost of living payments will be paid directly to households across the UK by the UK Government.
  • In the absence of a functioning Executive in Northern Ireland, the UK Government is taking decisive action to support the people of Northern Ireland through these measures.


Millions of most vulnerable households will receive £1,200 of help with cost of living


Cost of living support factsheet: 26 May 2022

Also, many energy companies offer help for those struggling to pay their bills.

Grants to help pay off your energy debts

If you’re in debt to your energy supplier, you might be able to get a grant to help pay it off.

The following energy suppliers offer grants to their customers:

If you can’t get a grant from your supplier, you might be able to get a grant from the British Gas Energy Trust. These grants are available to anyone - you don’t have to be a British Gas customer. You’ll need to get debt advice before applying - get help from a debt adviser.

Local energy grants

Check if you can get a local energy grant on the Simple Energy Advice website.

You might also be able to find grants or schemes run by your local council. Find your local council on GOV.UK.

If you can't afford to top up your prepayment meter

You might be able to get a fuel voucher. This is a code given to you in a letter or in a text message or email. You can use it to add credit to your gas card or electricity key. If you don't have one of these, contact your supplier to get one.

Your local council might be able to help you get a fuel voucher - find your local council on GOV.UK.

Note most, if not all of these grants, have some kind of criteria so make sure you read through everything first.

Rishi states that ''Eight million most vulnerable households will receive at least £1,200 of extra support this year, including the £150 council tax rebate that many families received last month''.

Sky News have a breakdown on everything, if you want a read through.
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