Cost of living support

Jun 15, 2022

The Chancellor has announced a range of financial support measures to assist with energy costs. There is no direct support for businesses. The following are available to individuals:

  • all households: £400 automatically deducted from each electricity bill in October;
  • pensioners: £300 for each household that receives the winter fuel payment;
  • disabled: £150 in September for those claiming a range of disability benefits including the attendance allowance;
  • other claimants: £650 split over two instalments paid in July and the Autumn for those claiming various means-tested benefits including pension credit; and
  • council taxpayers: £150 for those with homes in council tax bands A to D.

Those claiming means-tested benefits must have commenced their claim by 25th May 2022 in order to receive the payments.

These are tax-free grants; they do not need to be repaid and they are ignored for state benefit calculations. The grants will be paid directly by HMRC or the DWP into the individual’s bank account.

Most local councils have already paid the £150 rebate to those who pay council tax by direct debit but those who pay by other means may need to make a separate claim. Local councils have also been given additional funds to provide targeted support to those in greatest need.

Other Tax Briefing – Summer 2022 articles

Car or van questions

Preparing for MTD for income tax

Changing NIC in July

Reporting employee expenses

Trivial benefits for directors and family

Tax implications of Homes for Ukraine

Beware of tax scams

Using your personal tax account