DWP support worth up to £1,630 could reach millions by Christmas

UK households are due to receive a series of payments this winter, potentially arriving by Christmas, to help cover essential costs. This extra financial support could benefit families, pensioners, disabled individuals and carers, and is intended to counterbalance reductions to the Winter Fuel Payment and the increase in the Ofgem price cap.

The regulator has set the cap at £1,717 per year for an average household that uses electricity and gas and pays by direct debit, from October 1 to December 31. This represents an increase of £149 or 10 per cent compared with the previous cap of £1,568, which was in place from July 1 to September 30.

As the weather becomes colder and darker, many face larger bills and the worry of how to afford them. Despite relatively low inflation at 2.2 per cent, and falling petrol prices, many essential living costs such as food, energy, water, housing and TV/internet packages remain high, reports Coventry Live.

The DWP has ceased making direct cost of living payments to assist low-income households, with the last payment made in February 2024 and no further plans announced. Households in need of additional cash are being cautioned not to fall for scam texts requesting personal and financial details to claim government allowances for winter heating or the cost of living, as these are all fraudulent.

The Department for Work and Pensions, Social Security Scotland, the Department for Energy Security and Net Zero, along with councils across England, are offering a variety of payments to low-income households this winter. These include the Winter Fuel Payment, which can be up to £300.

Labour has restricted the annual payment so that only those on Pension Credit and some other means-tested benefits qualify. The DWP estimates that around 880,000 pensioners are eligible for Pension Credit but are not claiming it and is trying to increase take-up.

Anyone who successfully claims by December 21 will be able to get the Winter Fuel Payment. People can qualify for the payment in Winter 2024/2025 if they were born before September 23, 1958 - meaning they were at least pension age by September 23 this year - and live in England or Wales while receiving one of seven benefits.

These are Pension Credit, Universal Credit, income-related Employment and Support Allowance (ESA), income-based Jobseeker's Allowance (JSA), Income Support, Child Tax Credit and Working Tax Credit. If you were born between September 23, 1944, and September 22, 1958, you should receive £200.

Those born before September 23, 1944, and are therefore aged 80 or above, qualify for the higher level of £300. Letters advising eligible people how much they will receive are being sent from mid-October. The DWP says most payments are made automatically in November or December.

The Warm Home Discount offers a one-off £150 reduction on electricity bills for households. If you receive both gas and electricity from the same provider, you can request for the discount to be applied to your gas bill instead.

Households that are eligible for this payment include those receiving the Guarantee Credit element of Pension Credit or another DWP low-income benefit and have high energy costs, as determined by the Department for Energy Security and Net Zero which now oversees the scheme. Other qualifying benefits include the Savings Credit element of Pension Credit, income-related Employment and Support Allowance (ESA), income-based Jobseeker's Allowance (JSA), Universal Credit, Housing Benefit, Income Support, Child Tax Credit and Working Tax Credit.

Most qualifying households will receive a letter from the DWP confirming their eligibility between November and January. The payment is then made directly to the household's energy account between November and March. The DWP also provides a Christmas Bonus of £10 each year. This one-off tax-free payment is made just before Christmas. However, critics argue that the amount has remained the same since its introduction in 1972, with no efforts made to increase it.

The bonus is automatically transferred into the bank accounts of those who qualify. To be eligible, you must reside in the UK, Channel Islands, Isle of Man or Gibraltar during the qualifying week, usually the first week of December, and receive at least one of the following benefits: Adult Disability Payment, Armed Forces Independence Payment, Attendance Allowance, Carer's Allowance, Child Disability Payment, Constant Attendance Allowance (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 and Incapacity Benefit at the long-term rate.

Also eligible are recipients of Industrial Death Benefit (for widows or widowers), Mobility Supplement, Pension Credit guarantee element, Personal Independence Payment (PIP), State Pension (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 State Pension Age, War Widow's Pension, Widowed Mother's Allowance, Widowed Parent's Allowance or Widow's Pension.

Those who have deferred their State Pension claim and are not eligible for other qualifying benefits will not receive the Christmas Bonus. Each individual in a marriage, civil partnership, or cohabitation who receives one of the qualifying benefits is entitled to a Christmas Bonus.

Payments are usually made in early December. The Household Support Fund, designed to help the most vulnerable households, can provide up to £500 to cover essential costs such as groceries, toiletries, and energy bills.

People are being urged to check if they can claim money or vouchers from their local council this winter. An additional £421 million has been added to the fund by the Government this year, allowing it to run until the end of next March.

Moreover, an investment of another £1 billion is planned to extend it into the next financial year. This money is distributed among local authorities across England to assist those most in need.

The DWP is urging councils to reserve some funds for pensioners who are above the Pension Credit threshold and therefore likely to miss out on the Winter Fuel Payment under its new rules. Councils determine how to allocate their share.

Some offer direct payments, others provide vouchers, appliances or other support. Depending on the council managing the fund in their area, people can generally receive up to around £500.

Coventry City Council is offering support with gas, electricity, oil and water costs through PayPoint top-ups or vouchers. This assistance can be accessed up to three times per customer from October to March.

Single individuals or couples without children can receive aid worth £120, while families can get £160. Meanwhile, Birmingham City Council is providing hardship grants of £200 from early November to help with food and energy expenses, managed by Birmingham Voluntary Service Council.

The Cold Weather Payment is a £25 sum given out every time your local weather station records the average temperature in your area as zero degrees Celsius or below over seven consecutive days - or predicts it to be so. If you're eligible, you'll receive the payment automatically.

There's no limit on the number of payments you can receive and in previous years some have had three amounts, totalling £75, if there has been a series of bitterly cold blasts hitting their postcode area. The scheme, which is weather-dependent and does not guarantee payouts, is now open and will run from 1 November until the end of March.

The benefits that may qualify include Universal Credit, Pension Credit, Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance (ESA), and Support for Mortgage Interest.

In addition to your benefits, you typically need to be receiving a disability or pensioner premium, or have a disabled child or a child under five on your claim. After each period of severe cold weather in your area, you should receive a payment within 14 working days.

It's paid into the same bank or building society account as your benefit payments, with your National Insurance number followed by the identifying code DWP CWP for people in England and Wales. The Child Winter Heating Payment, which provides £251.50 to assist with energy costs, is available to Scottish residents.

Eligibility for this payment extends to those living with a child or young person under 19 who qualifies for either the highest rate of the care component of Child Disability Payment (CDP) or Disability Living Allowance (DLA), or the enhanced rate of the daily living component of Adult Disability Payment (ADP) or Personal Independence Payment (PIP). To qualify, individuals must have been claiming one of these benefits during the week of September 16-22, 2024.

Social Security Scotland has confirmed that payments began reaching eligible households' bank accounts in October and will continue throughout this month.

The Winter Heating Payment, valued at £58.75 this year, is accessible to Scots who qualify for certain benefits such as Pension Credit and Universal Credit. This payment, which supersedes the Cold Weather Payment, is not dependent on freezing temperatures and is made in a single instalment between mid-December and February 2025.

The Carer's Allowance Supplement, an extra payment of £288.60, is awarded to unpaid carers in Scotland in recognition of their efforts. Social Security Scotland automatically issues it twice a year, with the next payment due in December.

Scots who were receiving Carer Support Payment or Carer's Allowance on October 7, 2024, are eligible for this payment. Those due a payment will receive a letter from Social Security Scotland in advance.