DWP Cost of Living Payment report shows more support needed

The in-depth Cost of Living Payments Evaluation, describes payments as a “life-raft” but says that respondents were concerned about their longer-term financial resilience.

"These individuals stressed their need for ongoing financial support," it says. 

A benefit claimant interviewed for the official report said: "Things are still going to go up in price. I don’t know what I’ll do if you don’t get any more of them [CoLP payments]."

It explains how the increased cost of living impacted on participants’ physical wellbeing, with research showing that recipients had been forced to

• Eat fewer meals and less nutritious food to cut costs.
• Eating less or not eating at all towards the end of the month because they ran out of money or wanted to save what food they had for their children.
• Eating less healthy food options, including less fruit and vegetables and more frozen food, because it was cheaper  
• Having to turn the heating on less due to energy price increases.
• Getting ill and catching colds as a result.
• The lack of heating had exacerbated issues with damp and mould  

Claimants did not having enough money for personal toiletries, for example going without shower gel so that their children could wash.

After receiving payments, parents expressed happiness at being able to treat their children for the first time in a long time, including for birthdays or Christmas.

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What were the Cost of Living Payments?

They were lump-sum payments to groups identified as most vulnerable to rising living costs. 

Means-Tested Benefit Cost of Living Payment

These were paid to those receiving means-tested benefits, including Universal Credit, across three payments: one of £301 paid during April/May 2023, one of £300 paid during October/November 2023, and one of £299 paid in February 2024 

Disability Cost of Living Payment

This was paid to those receiving a disability benefit, such as Personal Independent Payment. It involved a single payment of £150, paid in April 2023  

Today, the @CommonsWorkPen released a report into cost of living support payments following our oral evidence to the inquiry in July.

Read our response below.

👉 You can also see the report here: https://t.co/BCuxBpQpiN pic.twitter.com/0Oj74UWEFW

— Mencap (@mencap_charity) November 14, 2023

Pensioner Cost of Living Payment

This was paid to pensioner households who received a Winter Fuel Payment, meaning they were born before 25 September 1957. It was paid as a top-up to the Winter Fuel Payment, rather than as a separate payment. It involved an extra £150 or £300, depending on people’s circumstances, and was paid in November/December 2023 

Some recipients were eligible for more than one of the payments.

The report found that the payments met their intended aims, in that they helped people who were struggling significantly with the cost of living, and they were spent mostly on energy bills and groceries.

But, it says they were were "imperfectly targeted", because they were a flat rate and some recipients had much higher essential outgoings than others, so were swallowed up more quickly and the help was shorter-lived.

Will there be more Cost of Living Payments in 2025?

None have been announced yet from central government, despite rising costs for fuel, food and bills. 

But in the autumn budget, the government extended another scheme - the Household Support Fund for a further six months.

This is running up until March 30 2025, and councils have been given grants from the scheme to help people to meet immediate needs and afford household essentials including energy and water bills, food, and other essentials.