At Vincent & Co we like to keep you updated with news of any changes to personal finances, and there have been a few announcements recently.

On 26th May, the Chancellor announced the introduction of several new tax-free payments to families to help them deal with the increased cost of living:

    • The Energy Bills Support Scheme will be doubled to a one-off payment to households of £400, which will no longer be repayable (as had been previously announced). This support is additional to the £150 Council Tax rebate for households in England in Council Tax bands A-D, which was announced in February and has already been received by millions of households.

 

  • Individuals on means-tested benefits will receive a tax-free £650 Cost of Living Payment in two instalments, the first from July and a second in the autumn. No claim is needed: this sum will be paid directly into individuals’ bank accounts.
  • Pensioner households will receive a one-off extra tax-free £300 Pensioner Cost of Living Payment as a top-up to their annual Winter Fuel Payment.
  • In September, a tax-free £150 Disability Cost of Living Payment will be made to individuals who receive certain disability benefits, including the Disability Living Allowance and Attendance Allowance.

The Government is also providing an extra £500 millions of local support, via the Household Support Fund, which is being extended from October 2022 to March 2023. The government will issue additional guidance to Local Authorities to ensure support is targeted towards those most in need of support.