Millions of households are set to receive cost of living payments in the next two months.

The government has announced households receiving means-tested benefits will get these payments in three instalments.

The first payment of £301 will be made in spring, followed by the second payment of £300 in autumn and the final payment of £299 will be given in the spring of 2024 – totalling up to £900.

Households will receive the first payment between 25 April and 17 May.

Chancellor Jeremy Hunt said these payments are “the next part of the significant support we are providing through this challenging time”.

“This latest payment will provide some temporary relief, but the best thing we can do to help families and businesses is to stick to the plan to halve inflation this year.”

The exact dates of the cost of living payments later this year are yet to be finalised.

Who is eligible?

Just over eight million households will receive the £301 payment this spring. Those who are entitled to receive the payment are those on:

If you are eligible, the payment will be sent out automatically and directly to you – so you do not need to apply or do anything to receive it.

The payment reference for bank accounts will be “DWP COLP”, along with the applicant’s national insurance number.

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Most people will be paid through the Department for Work and Pensions (DWP) but those eligible solely through Tax Credits will be paid by HM Revenue and Customs (HMRC) instead.

HMRC will publish specific details of when payments will be made to these people.

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What other payments will people receive?

Further payments worth £150 will be given to eligible people with disabilities.

Pensioners who are entitled to Winter Fuel Payments will also get extra support later this year, earning either £150 or £300 on top of their normal payment from November.

This means some people will receive up to £1,350 in direct payments if they are eligible for all three types of support.

The Department for Work and Pensions has said that low-income pensioners who are not yet receiving Pension Credit can still qualify for the £301 payment if they submit Pension Credit applications by 19 May.

Work and Pensions Secretary Mel Stride said: “These payments will give a financial boost to more than eight million households as we continue to wrap our arms around the most vulnerable, while the best way we can protect people from high costs is to halve inflation by the end of this year.”

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