MARTIN Lewis has predicted when the new one-off £900 cost of living payment could land in accounts next year.
The extra cash was announced by Chancellor Jeremy Hunt last week during his Autumn Statement.
In his statement last Thursday, the Chancellor told the House of Commons that over eight million struggling households will be paid a £900 support payment.
As we move into winter, many Brits are feeling the chill but are reluctant to put the heating on because of an increase in energy costs – so this should help out.
The Department for Work and Pensions (DWP) and HMRC have not yet revealed when this money will be paid into accounts.
Consumer expert Martin Lewis, however, reckons it will be around this time next year.
read more in autumn statement
Speaking in a video posted to MoneySavingExpert, the bargain expert predicted what might happen with the newly announced cost of living payments:
“As for exactly when they’ll be paid, I don’t know yet. My guess – and it’s only a guess – is they will be put in place in time for next winter.
“So those payments will come some time probably around October/September, and the cost of living payment will probably come in two tranches as it did this year.”
One part of the £650 cost of living payment was delivered to bank accounts in July – with the amount worth £326 – and the second £324 is being sent out this month.
However, those on Tax Credits may still be waiting for theirs – it will most likely arrive between November 23 and 30 to avoid overlap in payments.
The £900 payment will be going to millions on means-tested benefits – you’ll only be able to get it if you are claiming one of these benefits below.
For the previous payments, you had to be entitled, or later found to be entitled to one of these benefits by a certain date.
It’ll be paid in some way similar the £400 energy bill support payment – which is being paid in instalments of £66 over a six-month period.
We still don’t have all the information on how eligible people will be paid but like with other support payments, it’ll most likely be paid automatically into your bank account.
It’s usually the same account that you have any benefits paid into – so make sure it’s all up to date.
The government website also said that the DWP and HMRC will provide further detail on the timing of these payments, as well as eligibility dates in due course.
You may need to ensure you’re receiving the correct benefits in order to receive the handouts.
During the Autumn Statement, Mr Hunt also announced a further £150 for households on disability benefits.
People with disabilities who qualified for the current £150 one-off payment needed to receive one of the following:
Mr Hunt confirmed a second £150 payment will be made next year, but the criteria for receiving it is not yet known.
He also announced a second cost of living payment for retirees would be issued – worth £300.
The current Pensioner Cost of Living payment is being given to all pensioners who normally get the Winter Fuel Payment.
This means you qualify if:
For the second £300, you’ll qualify if you were born on or before September 25, 1956, but it’s not yet known whether households will qualify if they normally receive the Winter Fuel Payment.
The Chancellor offset the handouts with sweeping spending cuts and tax rises to try and fill the £60billion black hole in the nation’s finances.
He announced benefits and pensions will rise in line with inflation figures from September – 10.1%, in a win for millions.
However, he froze tax thresholds until 2028, which will drag more workers into higher tax bands.
The cost of living cash comes in addition to the payments already announced by the government in May and amidst soaring energy and food bills.
Read More on The Sun
Inflation hit 11.1% in October, meaning people’s pockets are being stretched.
Millions are contending with higher mortgage rates as well following the government’s disastrous mini-budget and the Bank of England raising its base rate to 3% from 2.25%.
