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Cost-of-Living Payments and Energy Bills Rebate

In response to the 2021-23 cost-of-living crisis the UK government announced two distinct one-off support packages. Both are modelled in PolicyEngine UK under gov.treasury.* and feed into household net income via gov_spending and the HBAI benefit aggregates.

Energy Bills Rebate (winter 2022)

Announced by the Chancellor in February 2022 to help households with the spike in domestic energy prices. Two strands:

PolicyEngine models these via:

Cost-of-Living Payments (2022-23 and 2023-24)

Two successive packages, both modelled through the variable cost_of_living_support_payment at gov/treasury/cost_of_living_support/. The variable returns the sum of three independent strands depending on which qualifying benefits the household receives:

Strand2022-232023-24Qualifying benefits
Means-tested CoL Payment£650 (two instalments)£900 (three instalments)Universal Credit, Pension Credit, Housing Benefit, income-based JSA / ESA, Income Support
Pensioner CoL Payment£300£300Winter Fuel Payment recipients
Disability CoL Payment£150£150DLA, PIP, Attendance Allowance, AFCS, IIDB, SDA, child / war disability pension

From 2024-01-01 the parameter values are explicitly reset to zero so the one-off doesn’t extrapolate forward.

How PolicyEngine computes the payment

For each strand s ∈ {means_tested_households, pensioners, disabled}:

on_s = (sum of household's reported amounts in s.qualifying_benefits) > 0
strand_s = s.amount(period) * on_s

Total cost_of_living_support_payment = means_test_bonus + pensioner_bonus + disabled_bonus, i.e. the strands stack — a pensioner on Pension Credit who also receives PIP will collect all three payments. This matches the actual policy.

References