Andy Burnham, the new Prime Minister, has announced that his government will oversee automatic extra payments for claimants of Universal Credit, Employment and Support Allowance (ESA), and Pension Credit. The Makerfield MP replaced Sir Keir Starmer on Monday and is now set to offer households help and "breathing room" amid the ongoing cost of living crisis.
Cold Weather Payments: Automatic £25 Payouts
Among the levers the Department for Work and Pensions (DWP) will pull over winter, as the weather gets colder, is the £25 Cold Weather Payment. These payouts are for those receiving certain benefits, and if you're eligible, you'll receive these payments automatically without needing to apply. However, you may need to report a change in circumstances if you have a baby or if a child under five comes to live with you.
You'll get a payment if the average temperature in your area is recorded as, or forecast to be, zero degrees Celsius or below over seven consecutive days. You'll receive £25 for each seven-day period of very cold weather between November this year and the following March.
Additional Winter Support: Warm Home Discount and Winter Fuel Allowance
As well as the £25 Cold Weather Payments, eligible households may also receive a Warm Home Discount worth £150 this year. Older claimants will be handed a Winter Fuel Allowance from the DWP, ranging from £100 to £300 depending on circumstances.
You may get Cold Weather Payments if you're receiving Pension Credit, income-related ESA, Universal Credit, or Support for Mortgage Interest (SMI). Specifically, you'll usually qualify if you get income-related ESA and are in a work-related activity group or support group. For Universal Credit, you'll typically receive payments if you are not employed or 'gainfully self-employed', or if your partner is not employed or 'gainfully self-employed'. You're likely to be considered 'gainfully self-employed' if being self-employed is your main job, you work regularly, and expect to make a profit.
Eligibility for Support for Mortgage Interest Claimants
You'll usually get Cold Weather Payments if you receive SMI and are treated as getting a qualifying benefit, likely a severe or enhanced disability premium or a pensioner premium. Burnham's government has promised that his cabinet will be a "cost of living government," focusing on easing financial pressures on households.
