Research and analysis

Cost of Living Payment 2022 to 2023 management information

Updated 12 December 2022

Read about the Cost of Living Payment – this is help with the cost of living if you’re entitled to certain benefits or tax credits.

Introduction

In May 2022, the then Chancellor of the Exchequer Rishi Sunak announced a £15 billion package of support with cost of living measures, targeted particularly at those with the greatest need. This package built on the over £22 billion announced prior to May 2022, and the government has since announced a new Energy Price Guarantee. The consumer saving from the Energy Price Guarantee will be based on usage, but an average household will save around £1000 a year (based on current energy prices from October).

This package included support for households in receipt of means tested benefits with a one-off Cost of Living Payment of up to £650, made in two payments, and support to help disabled people with the particular extra costs they will face, with people who receive non-means tested disability benefits receiving a one-off Disability Cost of Living Payment of £150.

The means-tested benefit Cost of Living Payment of up to £650 is being made in two payments, for families in receipt of one of the following means-tested benefits during the qualifying periods:

  • Universal Credit
  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Working Tax Credit
  • Child Tax Credit
  • Pension Credit

The Disability Cost of Living Payment is a £150 payment for individuals in receipt of one of the following disability benefits during the qualifying period:

  • Disability Living Allowance
  • Personal Independence Payment
  • Attendance Allowance
  • Scottish Disability Benefits
  • Armed Forces Independence Payment
  • Constant Attendance Allowance
  • War Pension Mobility Supplement

As part of this package, the government is also providing extra support to help all pensioners across the UK stay warm this winter, with up to an additional £300 Pensioner Cost of Living Payments, as well as helping all domestic electricity customers in Great Britain to cope with the impact of higher energy bills, with £400 off their bills from October through the expansion of the Energy Bills Support Scheme (EBSS).

For families that still need additional support; the government is providing an extra £500 million from October to help households with the cost of essentials, bringing the total funding for this support to £1.5 billion. In England this will take the form of an extension to the Household Support Fund backed by £421 million, running from 1 October 2022 to 31 March 2023. Devolved administrations will receive £79 million through the Barnett formula.

This publication covers the means-tested benefit Cost of Living Payments and the Disability Cost of Living Payments made by the government to people in receipt of one of the qualifying benefits.

There are 2 payments to recipients of means-tested benefit, one of £326 paid in summer, and a second of £324 paid in autumn; with each payment being paid by Department for Work and Pensions (DWP) to families in receipt of DWP administered means tested benefits, and by HM Revenue & Customs (HMRC) for families in receipt of tax credits only. There is one payment to recipients of qualifying disability benefits, delivered by DWP and Ministry of Defence (MOD) for eligible individuals.

It is estimated that by the end of November over 90% of recipients of the second means-tested benefit Cost of Living Payment of £324 will also have received the first payment of £326.

These payments are made at different times, and this publication will be updated as new payments are paid. Read the timetable for the Cost of Living payments.

Not all payments will be made immediately. For some of the qualifying benefits, entitlement may not have been established at the time the payments are made. If an entitlement that would qualify for a payment is later established to have existed, a payment will then be issued at that time.

Means tested benefits Cost of Living payment, first payment

Number Spend (£m)
Total payments processed as of 8 September 2022 8,400,000 2,700
DWP 7,200,000 2,400
HMRC 1,200,000 400

Disability benefits Cost of Living payment

Number Spend (£m)
Total payments processed as of 30 September 2022 6,000,000 900
DWP 6,000,000 900
MOD 5,000 1

DWP: Means tested benefits Cost of Living payment, second payment

Number Spend (£m)
Payments processed by DWP on 8 November 2022 1,600,000 518
Payments processed by DWP on 9 November 2022 1,600,000 518
Payments processed by DWP on 10 November 2022 1,600,000 518
Payments processed by DWP on 11 November 2022 1,600,000 518
Payments processed by DWP on 14 November 2022 900,000 277
Total payments processed by DWP 7,300,000 2,350

Across government: Means tested benefits Cost of Living payment, second payment

Number Spend (£m)
Total payments processed as of 12 December 2022 8,300,000 2,700
DWP 7,300,000 2,400
HMRC 1,000,000 300

Notes for tables:

  • number of payments rounded to nearest 100,000 except for MOD, where they are rounded to nearest 1,000. Spend is rounded to nearest £100 million, except for MOD and the second DWP means-tested benefit Cost of Living Payments where it is rounded to nearest £1 million
  • a small proportion of automated payments may fail (for example, the customer has closed the account), but DWP, HMRC, and MOD have robust processes in place to ensure that all eligible claimants will receive their payments, with manual workarounds in place if necessary. Payments that failed to be processed in the initial automatic batches may not be fully reflected in the numbers above
  • due to the possibility of retrospective entitlement to the qualifying benefits, it may be that a lower number of families than estimated in DWP’s Impact Assessment receive the cost of living payments immediately, as, over time, more families will establish entitlement
  • it is estimated that by the end of November over 90% of recipients of the second means-tested benefit Cost of Living Payment of £324 will also have received the first payment of £326. This is based on the published impact assessment, the average number of new starts to Universal Credit per month published on Stat-Xplore, and the number of Pension Credit claims with duration of less than 6 months, also published on Stat-Xplore
  • as of 14 November 2022, over 99% of DWP claimants initially eligible for the second means-tested benefits Cost of Living Payment have had their payments processed

Statement of compliance with the Code of Practice for Statistics

The Code of Practice for Statistics (the Code) is built around 3 main concepts, or pillars:

  • trustworthiness – is about having confidence in the people and organisations that publish statistics
  • quality – is about using data and methods that produce statistics
  • value – is about publishing statistics that support society’s needs

The following explains how we have applied the pillars of the Code in a proportionate way.

Trustworthiness

The figures were created following interest from Department for Work and Pensions (DWP) ministers and the Members of Parliament. They are being published now in order to give equal access to all those with an interest in them.

Quality

The data that underpins this information is taken directly from DWP, and HMRC and MOD payment systems.

The information used refers to gross payments and vouchers as per notes above

Value

Releasing this information serves the increased public interest in how the government is supporting the public through the cost of living crisis. The figures also help reduce the administrative burden of answering Parliamentary questions, Freedom of Information requests and other forms of ad hoc enquiry and serves public.

Further information and feedback

Lead Statistician: Steve Ellerd-Elliott

Analyst: Hjalte Sorensen

Contact DWP Press Office by phone on 0203 267 5129 if you have any questions or feedback.