UK Government Considers Additional Cost of Living Payments for Struggling Families
The UK Government is considering the possibility of providing additional cost of living payments to millions of struggling families during the winter period. This proposal comes as part of a new action plan that will be taken into consideration ahead of the Chancellor’s Autumn Statement later this month.
Under the plan, claimants receiving Personal Independence Payment (PIP), Disability Living Allowance, and carers could receive £900. This payment would also be extended to those on means-tested benefits. Currently, the Department of Work and Pensions (DWP) and HMRC are in the process of distributing the second installment of a £900 package to eligible households receiving specific benefits.
However, National Energy Action (NEA) believes that more needs to be done to help vulnerable and low-income households. NEA has put together a list of priorities for the Government, hoping that some of them will be implemented this winter to tackle the energy crisis.
While inflation has fallen to 4.6 percent and a lower price cap has been implemented, gas and electricity bills are still anticipated to be high due to the absence of the monthly rebate that was active from October to March and provided a total discount of £400 to millions of households. NEA emphasizes that further actions are needed to support the most vulnerable people who are at risk of cold-related morbidity and death this winter.
NEA is urging the Government to consider additional cost of living payments for vulnerable households that have missed out on support. This includes low-income carers and households on bereavement allowance. The charity argues that carers should receive the full £900 regardless of whether they receive means-tested benefits, as they also face financial difficulties. Similarly, households in receipt of bereavement allowance, who may not be part of the means-tested social security system, should receive additional support.
The report from NEA states that households with disabilities and medical conditions are particularly vulnerable to the impacts of the energy crisis. They require more energy than the average household due to spending more time at home, needing a warmer environment for health reasons, or having high-demand medical equipment. NEA suggests that households in receipt of PIP and Disability Living Allowance should receive the full £900 cost of living payment, at an estimated cost of £4.5 billion.
To fund these additional payments, NEA proposes using money saved from other energy schemes or the underspends on related energy schemes. They argue that the fiscal situation is still tight, but there are funds available that could be deployed to provide targeted energy bill support for low-income and vulnerable households this winter.
The DWP has acknowledged the need for potential additional help and is reviewing its current cost of living payments. Guy Opperman, the Minister for Employment at the DWP, has indicated that more information on this matter can be expected in the Chancellor’s Autumn Statement on November 22.
In summary, the UK Government is considering providing extra cost of living payments to struggling families. While this is a positive step, organizations like NEA are urging further action and support for vulnerable households during the energy crisis. The government has yet to make final decisions on the matter, but more information is expected to be revealed in the upcoming Autumn Statement.
