Millions to get new cost of living payments from spring
3rd January 2023 10:34
by Myron Jobson from interactive investor
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But individuals will still need to do most of the heavy lifting.
The government has today announced when further cost of living payments will be made between spring 2023 and spring 2024. These payments are:
- up to £900 for people on an eligible low-income benefit
- £300 for pensioner households
- £150 for people on an eligible disability benefit
Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The fresh cost-of-living payments from this spring will help take the sting out of the increase in the energy price cap from April for those who need it most, with average energy bills set to rise from £2,500 to £3,000 a year.
“If the Bank of England’s forecasts are correct, the next round of support will land at a time when inflation could start to fall back significantly. But there are no certainties when it comes to inflation and the UK faces other challenges, including slowing economic growth, heightened financial vulnerabilities tied to high debt levels and rising interest rates which could squeeze household finances further.
“The various cost-of-living support schemes and measures past and present have and will help to ease the inflationary crunch on budgets - but most have a shelf life. As such, it remains important to have a comprehensive understanding of your financial position and make the necessary adjustments to ensure that your financial position holds strong long after the cost-of-living measures expire. The fact remains that individuals will have to do most of the heavy lifting to fortify their finances. If you don’t have a budget, now is a good time to start – and stick with it.”
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