When will my living expenses payment come? All data including £650 utility bills help


Boris Johnson has announced a “big bazooka” living expenses package – and suggested Brits must schedule it by spring.

After weeks of calls for more action, the Prime Minister sent his Chancellor Rishi Sunak to announce £15billion in support, a move he claims was not meant to distract from Partygate.

Neither Downing Street nor the Treasury need to rule out further aid later as energy bills are expected to hit £2,800 a year in October.

But Boris Johnson said: “We have to make it absolutely clear to people that it’s going to be difficult and that the government cannot solve every problem.”

He added the package will help “get us through until I think prices will go down”. Most people don’t expect that until spring.

Resolution Foundation’s Mike Brewer said it was “a bold and well-directed support package” but “households will still feel tight pressures over the coming year.”

Many people will be concerned about bills this winter


(Getty Images/iStockphoto)

So what has been announced and, more importantly, when exactly will you get it? We go through month by month.

Now: £150 council tax refund

As of April, people in England in council tax bands A to D should have received a £150 rebate from their council tax.

It has already arrived for most, but because it was administered by hundreds of individual councils, many residents have experienced delays.

If you still haven’t received your discount, you should contact your local authority.

This measure applies in England.

Rishi Sunak announced the new measures yesterday



July: Social security threshold raised

On July 6, the limit of what you can earn before paying Social Security will rise from £9,880 to £12,570 a year.

It will exempt some of the low earners from paying the tax and save those who still pay £330 a year.

But that’s before you consider two things.

First, National Insurance rose from 12% to 13.25% in April thanks to – you guessed it – Rishi Sunak.

If you add the tax AND threshold increases together, only those earning less than £37,000 will be better off than they were before April. And they may not feel like celebrating – £30,000 earners are only £53 a year better off.

Secondly, if you work but work on Universal Credit you will feel less supported because for every pound you earn 55p in benefits will be ‘cut’. Models suggest a single parent will gain £16,000 and UC £27 a month from the threshold change, but £15 of that will be cut in Universal Credit.

This applies throughout the UK.

Boris Johnson gives with one hand and takes with the other



July: £325 for most beneficiaries

8.3 million UK claimants of Universal Credit, Tax Credits, Pension Credit and Legacy Benefits will receive two payments of £325 each.

If you take advantage of any of these benefits other than Tax Credits, your first payment will be in your bank account “from” July.

The exact payment date is not yet confirmed and will likely depend on when you receive Universal Credit later in the month.

Eligible beneficiaries must consume these benefits no later than May 25, 2022 to be eligible for the first of the two payments.

The £650 is tax-free, does not count towards the benefit cap and has no impact on existing incentive awards.

This applies throughout the UK.

Boris Johnson with DWP secretary Therese Coffey



Late summer or early autumn: £325 for some tax credit applicants

Those with tax credits will also receive two payments of £325. But theirs will take longer to arrive because they are managed by HMRC, not the DWP.

It is understood that these are due in late summer or early autumn for the first payment and by Christmas for the second payment.

This applies throughout the UK.

Until September: £150 for disabled Brits

£150 goes into the bank accounts of 6 million people for the following disability benefits:

  • Disabled Life Support
  • Personal Independence Payment
  • attendance fee
  • Scottish Disability Benefits
  • Armed Forces Independence Payment
  • Permanent Care Allowance
  • Mobility supplement to the war pension

These benefits must be applied for or (later successfully) applied for by May 25th.

They are direct, tax-free, do not count towards the benefit cap and have no impact on existing benefit commitments.

The timing is yet to be determined as the DWP has yet to pass the necessary legislation to pay out the money.

This applies throughout the UK.

The timing is not fixed because the DWP failed to pass the necessary legislation



Autumn: Second payment of £325 for beneficiaries

As we have explained, the one-off payment of £650 for beneficiaries goes into bank accounts in two lump sums of £325.

There’s no date yet for the second lump sum, but the government says it will arrive in the fall for those on Universal Credit, Pension Credit and most legacy debt.

Again, those with tax credits will have to wait longer — the only guarantee is they’ll get them by the end of the year.

October to March: £400 off energy bills for everyone

A £200 ‘buy now, pay later’ rebate on all Brits’ electricity bills from October 1 – which had to be paid back over five years – has been scrapped.

Instead, all households will receive £400 off their electricity bills as a non-repayable subsidy from October.

You will not receive the £400 credited to your account all at once. This occurs over a six month period from October to March.

So if you pay by monthly direct debit, you might get £66.67 a month off your bill. It’s a direct discount on your bills, not cash to spend.

That means you’ll likely find that your monthly bills are still higher than they were at the same time last year.

Customers with prepayment meters will have the money credited to their meter or via a voucher. The mechanism for each company is not yet confirmed.

This is true across the UK but not in Northern Ireland, where the administration has been asked to develop its own system.

November to December: payment of £300 for most pensioners

Retiree households receiving a winter fuel payment in November or December will receive a one-off pension payment of £300.

Those payments, worth £2.5bn, will be paid alongside the winter fuel payment, which is worth between £100 and £300 for pensioners.

In most pensioner households, payment is made by direct debit. Eligible are those aged 66 or older by September 19, although some retirees do not qualify for the winter fuel payment.

This applies throughout the UK.

April 2023: Increase in benefits and pensions

Even if benefits and pensions are not being increased permanently now, as many have been calling for, there will be a large increase next year.

The April 2022 increase was a meager 3.1%, below inflation as it was based on the September 2021 CPI figure. But in April 2023, the increase could be 10% above inflation.

Rishi Sunak said he would stick to that plan, subject to review by the Labor and Pensions Secretary. He said: “According to current projections, it is likely to be significantly higher than the projected inflation rate for next year.”

Mr Sunak also said the triple lockdown will return to the state pension – to ensure it increases by inflation, wages or 2.5%, whichever is highest. As a result, pensions should also rise by around 10%. This comes as no surprise, but it is a major commitment after the Tories broke their triple lock manifesto promise last time out.

This applies throughout the UK.

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Fry Electronics Team

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