UK households handed £3,200 cost of living payments before Christmas

Millions of households could be set to receive up to £3,200 worth of cost-of-living support this winter.

While some payments are automatic, others require a claim, making it crucial for people to be aware of the available assistance – especially during the festive period when finances are often strained.

The Government has also narrowed the eligibility criteria for the Department for Work and Pensions () , leaving 10 million pensioners facing up to £300 more on heating costs.

From energy bill support to supermarket vouchers, here is a rundown of some of the support options available.

Warm home discount – £150

The Warm Home Discount provides a one-off £150 rebate on households’ electricity bills. Eligible households can automatically receive this payment if they’re receiving the Guarantee Credit portion of Pension Credit, or are on a low income and have high energy costs.

Other qualifying benefits include the Savings Credit portion of Pension Credit, income-related Employment and Support Allowance (ESA),income-based Jobseeker’s Allowance (JSA), Universal Credit or Housing Benefit.

Most qualifying households should expect to receive a letter from the Department for Work and Pensions () confirming their eligibility between November and January.

The payment is then made directly to the household’s energy provider between November and March.

Winter Fuel discount – up to £300

For those still eligible for the , up to £300 is available to help cover heating costs.

People can qualify for the payment in Winter 2024 to 2025 if they were born before September 23, 1958, and live in England or Wales while receiving one of the following benefits:

• Pension Credit
• Universal Credit
• Income-related Employment and Support Allowance (ESA)
• Income-based Jobseeker’s Allowance (JSA)
• Income Support.

However, an estimated 880,000 pensioners may be eligible for Pension Credit but aren’t claiming it, making it vital for individuals to check eligibility for themselves and their loved ones.

Cold Weather Payment – £25

Households may also be entitled to the Cold Weather Payment, which provides £25 for each seven days when the temperature drops below zero. These payments are triggered by cold weather conditions and are automatically sent to those who qualify for Pension Credit or other eligible benefits, such as Universal Credit.

Energy grants – up to £2,000

Energy companies are providing thousands of pounds worth of assistance to help those struggling with .

British Gas has been providing energy debt write-off grants of up to £2,000. A number of other firms, such as Octopus Energy and EDF also offer household support funds to help customers with bills. People can check what support is available through their provider through the respective websites.

Christmas Bonus – £10

Each year, the distributes a one-off tax-free £10 payment just before Christmas – although the figure hasn’t changed since 1972.

The bonus is paid to people who get certain benefits in a specified qualifying week, which is normally the first full week of December. The bonus does not need to be claimed, it will arrive automatically in the bank accounts of those eligible.

To get a Christmas Bonus people must be present or “ordinarily resident” in the UK, Channel Islands, Isle of Man or Gibraltar during the qualifying week. People must also get at least one of the following benefits in the qualifying week (usually first full week of December):

• Adult Disability Payment
• Armed Forces Independence Payment
• Carer’s Allowance
• Child Disability Payment
• Constant (paid under Industrial Injuries or War Pensions schemes)
• Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim)
• Disability Living Allowance
• Incapacity Benefit at the long-term rate
• Industrial Death Benefit (for widows or widowers)
• Mobility Supplement
• Pension Credit – the guarantee element
• Personal Independence Payment (PIP)
• (including Graduated Retirement Benefit)
• Severe Disablement Allowance (transitionally protected)
• Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes)
• War Disablement Pension at age
• War Widow’s Pension
• Widowed Mother’s Allowance
• Widowed Parent’s Allowance
• Widow’s Pension.

Household Support Fund – up to £740

Thousands of Britons are being urged to check if they can claim money or vouchers from their local council this winter.

The is targeted at the most vulnerable households and is typically used to help them with the cost of essentials like groceries, toiletries, and energy bills.

The Government has added a further £421million to the pot, which is allocated to local authorities across England to distribute to constituents most in need. The pot is available from October 1, 2024, to March 31, 2025.

Councils in England decide how best to allocate their fund by drawing from local knowledge and making direct contact with people in the community. The portion of funding each council receives is based on the size of the population within its catchment area and its needs.

For a few examples of how local authorities have previously used the fund, Birmingham City Council distributed grants of up to £200 to help households with food costs and energy payments. Eligible residents in Plymouth could previously receive up to £740 in vouchers.

People can find out how much their area was awarded at and are being urged to check their council’s website or call their office to find out what support is available locally to them through the fund.