UK Households to Get £98 Cost of Living Support: The UK government has announced a new £98 cost of living support payment to help vulnerable households manage rising expenses. As inflation continues to put pressure on household budgets, this payment is part of the government’s broader strategy to provide targeted financial relief.
If you’re wondering whether you qualify and how to receive the payment, here’s everything you need to know.
What Is the £98 Cost of Living Support Payment?
The £98 cost of living support payment is a one-off, non-repayable grant designed for low-income households. Unlike previous lump-sum payments, this initiative follows a more frequent support model to help families cover essential costs such as:
- Energy bills
- Food and groceries
- Rent and household expenses
This initiative comes as part of the government’s ongoing efforts to support struggling households, particularly during periods of high inflation and rising utility costs.
Who Is Eligible for the £98 Payment?
Eligibility for the £98 cost of living payment is based on receiving certain benefits during a specific qualifying period. You may be eligible if you receive at least one of the following:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Working Tax Credit
- Child Tax Credit
Additional Eligibility Criteria:
- You must have received a payment during the qualifying period (usually the previous month).
- Universal Credit claimants must have received a payment for an assessment period that ended within the qualifying window.
- Tax Credit recipients must have received a payment or an annual award of at least £26.
- Pension Credit recipients must have been entitled during the qualifying period, even if their payment was reduced to £0 due to income limits.
Who Is Not Eligible?
You are not eligible for the payment if:
- You receive only New Style ESA, New Style JSA, or contributory ESA (unless you also receive a qualifying benefit).
- You receive Housing Benefit only without another qualifying benefit.
How Will the Payment Be Made?
The £98 payment will be deposited automatically into your existing benefit bank account. There is no need to apply.
- Payments will be listed under references such as “DWP COL” or “HMRC COLS” in your bank statement.
- Rollout begins at the start of the next month, and most recipients should receive payment within two weeks.
Joint Claims:
- If you are part of a joint benefit claim, you will receive one payment per household, not per individual.
- In some special cases, such as underpayment errors or a claimant’s passing, payments may be issued as backdated lump sums or to an estate.
What If You Don’t Receive the Payment?
If you believe you are eligible but have not received your payment by the end of the month following the rollout:
Steps to Take:
- Double-check eligibility:
- Confirm that you receive a qualifying benefit.
- Check that the qualifying period aligns with your benefit payment dates.
- Review your benefit account:
- Log in to your Universal Credit portal or HMRC tax credit account to check your payment status.
- Contact the relevant benefits office:
- DWP for Universal Credit, Pension Credit, and income-based benefits.
- HMRC for tax credit-related queries.
- Update your bank details if necessary.
- Request a formal review or appeal if the issue remains unresolved.
Smart Ways to Use the £98 Payment
While there are no restrictions on how you use the payment, financial experts recommend prioritizing it for essential expenses, such as:
- Utility bills (energy, gas, water)
- Groceries and essential household items
- Rent and council tax shortfalls
- Emergency savings for unexpected costs
If your immediate needs are covered, consider using the payment to:
- Reduce high-interest debts
- Top up a prepayment energy meter
- Start a small emergency fund
Additional Support Available
The £98 cost of living support payment is just one of several assistance programs available to UK households. You may also qualify for:
| Support Type | Description | How to Access |
|---|---|---|
| Household Support Fund | Discretionary financial help from local councils | Apply via your local authority website |
| Winter Fuel Payment | Extra winter energy support for pensioners | Automatically paid if eligible |
| Disability Cost of Living Payment | Additional payments for those with disabilities | Provided through existing disability benefits |
| Energy Support Schemes | Supplier assistance, payment plans, and hardship funds | Contact your energy provider |
| Council Tax Support | Reduced council tax bills for low-income households | Apply through your local council |
Final Thoughts
The £98 cost of living support payment provides much-needed financial relief to millions of eligible UK households. It is part of a broader strategy to ensure regular and accessible assistance for those facing financial hardship.
To make the most of this support:
- Check your eligibility and monitor your bank account over the coming weeks.
- Contact your benefits office if you encounter issues or do not receive your payment.
- Explore additional assistance programs to maximize the financial support available to you.
If you need further help, organizations like Citizens Advice, Turn2Us, and StepChange can provide guidance on managing your finances and accessing extra support.
