MILLIONS of households across the UK will start to receive a £299 Cost of Living Payment from today.

The payment will be sent out automatically and recipients do not need to apply to receive it.

This includes tax credits-only customers who will receive the payment from HMRC between 16 and 22 February.

The full list of benefit recipients that qualify for the third Cost of Living Payment are those who are eligible and receive at least one of the following: 

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

It is the third of up to three payments totalling up to £900 paid to eligible households on means-tested benefits over 2023/24 and comes as part of a support package that has helped millions of households since autumn 2021.

"The economy has turned a corner"

Mel Stride, Secretary of State for Work and Pensions, said:  "The economy has turned a corner, and with inflation falling we are providing millions of the most vulnerable households with another significant cash boost.

"Our fair approach to welfare is underpinned by a belief that the best way to secure long-term financial security is through work.

"This is why we have cut taxes for over 27 million working people and have launched a £2.5 billion Back to Work Plan to help thousands more people off benefits and into jobs.

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Chancellor of the Exchequer Jeremy Hunt said: "Our decisive action helped to more than halve inflation last year while building the foundations for long-term growth through sensible tax cuts, which will help people’s money go further.

"But the legacy of Covid and the ongoing Ukraine war has meant the last few years have been tough for many, which is why we’ve provided one of the largest support schemes in Europe worth £3,700 for the average household."

UK Government Minister for Scotland John Lamont said: "This crucial Cost of Living Payment will benefit more than 680,000 people across Scotland.

"We are continuing to help those who need it most and putting more money in the pockets of hard-working families by cutting national insurance and halving inflation.

Welsh Secretary, David TC Davies said: "Over 400,000 households in Wales will be receiving this payment directly into their bank accounts to help them with the Cost of Living.

"This payment is just part of the £104 billion package that the UK Government has put in place to ensure those most in need are supported."