New cost of living payments worth up to £1.1k to be announced this week

On Nov 16, 2022

A new cost of living payment is set to be announced later this week in the Autumn Statement.

Prime Minister Rishi Sunak and Chancellor Jeremy Hunt are said to discuss the money plans on Thursday (November 17).

The economic package is expected to include tax rises and government cuts, with a round of payments for Brits.

It is believed the government is drawing up plans to repeat the £150, £300 and £650 payments for hard-up groups.

This would hand another £650 to 8.2million households, reports the Mirror.

Another £150 would go to about 6.3m people on disability benefits, while another £300 to more than 8m pensioners.

Some OAPs would be in all three groups to pocket around £1,100 of support.

The statement is also set to announce a minimum wage rise in April with reports it could go up to £10.40 an hour.

However, the Budget is set to confirm the £2,500 cap on energy bills will end in April, which could make costs soar.

The Energy Price Guarantee is reported to move from capping average bills at £2,500 to as much as £3,100 a year.

Mr Hunt is rooting out £55billion of tax rises and spending cuts, including a council tax hike.

He is also expected to announce an £18.70 increase on the New State Pension, from £185.15 to £203.85.

New figures show Brits already suffered a 2.7% real-terms pay cut in the last year as inflation increased.

Torsten Bell, chief executive for Resolution Foundation, warned the payments would create a “big cliff edge”.

He said: “Someone earning £1 too much misses out on hundreds of pounds of support.

“Raising the level of the energy price guarantee will reduce the cost to the taxpayer of support.

“But [it will] be particularly bad news for households with high energy bills.”

Want all the biggest Lifestyle news straight to your inbox? Sign up for our free Daily Star Hot Topics newsletter

READ NEXT:

Money