Starting this Tuesday, a crucial support measure will benefit eight million households dependent on means-tested benefits. This final installment of the cost-of-living boost aims to alleviate the strain caused by rising food and energy costs.
Final Instalment of £900 Cost of Living Boost
The final instalment of the £900 cost-of-living payment, amounting to £299, is set to be disbursed directly into individuals' bank accounts by 22nd February, without requiring any application process. This payment is a pivotal component of the government's £104 billion cost-of-living support initiative.
This initiative will extend its reach to over 680,000 households in Scotland, more than 400,000 in Wales, and 300,000 in Northern Ireland, all of whom are recipients of means-tested benefits.
Introduced in 2022 by former Chancellor Rishi Sunak, the payments began with two installments totaling £650 in May. In November of the same year, Chancellor Jeremy Hunt expanded the support scheme to include a total of £900 distributed across three payments.
While the government has not announced any further extensions for the scheme, charities have issued an emergency plea for additional support.
Although there has been a significant decrease from previously alarming double-digit levels, the inflation rate took an unexpected upward turn, reaching 4% in December. This boost, the first in ten months, underscores persistent economic challenges.
Challenges Persist Amid Government Support
The ongoing impact of Russia's invasion of Ukraine in February 2022 continues to burden households with high costs for gas and electricity. The shortage of available properties has also led to a surge in rents, further worsening affordability concerns for many families.
Morgan Wild, the interim director of policy at Citizens Advice, stressed: 'We're witnessing a growing number of individuals seeking assistance from Citizens Advice, struggling to meet basic needs and facing dire circumstances.
“Our data shows that the cost of living payments do offer some respite to people, but this is short-lived. Historically high energy bills, unaffordable housing and other spiralling costs are keeping people in crisis.
“The government has responded with temporary support, but we need more than quick fixes. Long-term commitments are needed to raise people’s incomes and standard of living.”
A November report by the cross-party Commons work and pensions committee emphasized that while the cost-of-living payments were welcomed, they failed to adequately tackle the problem's scale. Instead, they offered only a 'short-term reprieve' for many individuals struggling with soaring inflation and mounting bills.
Addressing the imminent distribution of the final payment starting Tuesday, Mel Stride, the work and pensions secretary, commented: 'As the economy takes a positive turn and inflation declines, we're providing another significant cash injection to millions of the most vulnerable households.