£150 Disability Cost of Living Payments begin

  • Six million people who are paid certain disability benefits will begin to receive a one-off payment of £150 from Tuesday 20th September 2020
  • Payments are part of the government’s wider £37 billion support package, including the Energy Price Guarantee and cost of living payments totalling £650

Those who had confirmed payment of their disability benefit for 25th May 2022 will receive the £150 automatically, with the vast majority to be paid by early October 2022.

The payment will help disabled people with the rising cost of living, acknowledging the higher disability-related costs they often face, such as for care and mobility needs.

The cost of living payments from the government are part of a £37 billion package of support, which will see millions of households receive at least £1,200 this year to help cover rising costs, and follows the Prime Minister’s announcement of a new Energy Price Guarantee for the next two winters saving households on average £1,000 a year on their energy bills.

Work and Pensions Secretary Chloe Smith:

We know disabled people face additional costs and this government is listening and taking decisive action to protect the most vulnerable in our society.

In addition to the £150 Disability Cost of Living payment, households will save an average of £1,000 a year through our new Energy Price Guarantee and the lowest-income households will receive at least £1,200 to help with the rising cost of living this year.

This multi-billion-pound package of support reinforces our commitment to help UK households, particularly those with disability challenges, through the tough times ahead.

UK Chancellor of the Exchequer Kwasi Kwarteng:

The government is providing vital support to shield the most vulnerable from rising prices caused by global economic challenges.

From today, a one-off £150 payment will automatically land in over six million disabled peoples’ accounts. This is in addition to the decisive action we took last week to hold down energy bills over the next two years, saving the average household £1,000 a year.

The government is standing behind people this winter, and in the longer term we are focusing on driving economic growth – the only way to permanently boost everyone’s living standards.

Other help

  • The Energy Price Guarantee (EPG) will apply from 1st October 2022 and will discount the unit cost for gas and electricity use. This guarantee, which includes the temporary suspension of green levies, means that from 1st October 2022 a typical household will pay no more than £2,500 per year for each of the next two years. This is in addition to the £400 Energy Bill Support Scheme.
  • On top of the EPG and £150 Disability Cost of Living Payment, there is an extra £150 for properties in Council Tax bands A-D in England. On top of this, disabled people on low incomes may also be eligible for the other Cost Living payments totalling up to £650 – households in receipt of a means-tested benefit received the first of the two automatic Cost of Living payments of £326 from 14th July 2022. The second means-tested payment of £324 will be issued later this year.

Who is eligible

  • Those who receive the following disability benefits may be eligible for the one-off payment of £150 in September:
    • Disability Living Allowance,
    • Personal Independence Payment,
    • Attendance Allowance,
    • Scottish Disability Benefits (Adult Disability Payment and Child Disability Payment),
    • Armed Forces Independence Payment,
    • Constant Attendance Allowance
    • and War Pension Mobility Supplement.
  • Those who had confirmed payment of their disability benefit for 25th May 2022 are expected to be paid shortly after the payment window opens. For those awaiting confirmation of their disability benefits on 25 May 2022, or who are waiting to be assessed for eligibility to receive disability benefits, the process may take longer but payments will still be automatic.
  • You must have received a payment (or later receive a payment) of one of these qualifying benefits for 25th May 2022 to get the payment.

Cost of living support

  • You can read more about the government’s cost of living support on the Help with the cost of living page.
  • The Government has also expanded the Household Support Fund in England – which helps people with food and energy bills – with an extra £421 million – for October 22-March 23, and topped up funding by £79 million for devolved nations; the total value of this support now stands at £1.5 billion.
  • This is all in addition to changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants, a rise in the National Living Wage to £9.50 an hour, and a tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.

PAYadvice.UK 20/9/2022

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