interactive investor comments on the cost of living payment

The payment is out of date and won’t stretch far enough ahead of bleak winter for personal finances, says Myron Jobson.

• Around 1.1 million claimant families receiving tax credits will get their first cost of living payment from Friday 2 September 2022, HM Revenue and Customs has confirmed

Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The unveiling of the date of the first cost of living payment comes on the eve of the energy price cap announcement, which is expected to add a terrifying amount to the annual energy bill from October.

“Every little helps when battling the onslaught of rising prices, but the measure, along with the £400 energy grant and other initiatives that form part of the existing multi-billion energy support package, is out of date. After all, they were made before the worsening of the energy crisis which has left consumers facing energy bills that blows initial estimates out of the water this winter.

“The government’s cost-of-living support measures will not stretch far enough to shield the most vulnerable members of society from the eye-watering price rises from all corners, and the national conversation is now turning increasingly towards further support packages - whether that’s from government or business. This week, for example, British Gas Energy said it will donate 10% of all profits to the British Gas Energy Support Fund, and while there has been much debate about the overall impact, it is perhaps indicative of where the conversation is heading.

“Ultimately, it's still looking like it’s going to be a long and uncertain winter - and, for those who can, building financial resilience is going to be the ultimate goal.”