Second £300 cost-of-living payment rolled out ahead of winter

Hard-up households are set to receive a second £300 cost-of-living payment from Tuesday.

The payment will be made to people in receipt of certain benefits, including universal credit, and will be paid directly into their bank accounts.

More than eight million households across the UK will receive the second of up to three cost-of-living payments, totalling up to £900 through 2023 and 2024.

The payments are tax-free, do not contribute towards the benefit cap, and do not impact on existing benefits.

A further cost-of-living payment is due to be made to eligible households next spring.

As the payments were rolled out, Rishi Sunak said: “I know that winter can be a particularly challenging period for many families across the country.

“That’s why we have put in place a package of immediate support for vulnerable households over the coming months.”

As he laid out plans to ease living costs, the Prime Minister also claimed that a recent decision to extend the £2 bus cap for all journeys in areas of England outside of London was made possible by the decision to cancel the northern leg of HS2.

“We are lowering travel costs through the bus fare cap, which we are able to do because of our long-term decision to cancel phase 2 of HS2,” Mr Sunak said.

Reheated

But Labour said Mr Sunak had made a “reheated announcement” about the funding, which was first detailed earlier this year.

Darren Jones, shadow chief secretary to the Treasury, said: “Thirteen years of Tory chaos and instability have damaged our economy – and it’s working people who are paying the price in sky-high bills and soaring mortgage repayments.

“Our country has enormous potential, but Rishi Sunak doesn’t have what it takes to turn around our ailing economy and improve family finances.

“Labour will grow our economy by investing in Britain to boost wages, bring down bills and make people in all parts of the country better off.”