People across the North East may be entitled to a £650 payment to help them with the cost of living.
Chancellor Rishi Sunak set out a new plan to try to tackle Britain's crisis on Thursday. His measures include support to low-income families, pensioners and those on health and disability benefits, reports Birmingham Live.
Among the schemes is a £650 payment to more than eight million households on means-tested benefits. He also announced that there would be an additional £300 for pensioners and £150 for those on disability payments.
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The Chancellor said state benefits themselves would not be increased for the remainder of this financial year, but were likely to get a big rise next April for the 2023-2024 year.
So what are means-tested benefits and which ones are set to get this £650 sum, and when? Here's everything we know.
What are means-tested benefits?
Means-tested benefits are those that depend on:
- how much you get in wages or other income
- what you have in savings
Among them is Universal Credit, which is cut by 55p in every £1 for anything earned above the work allowance.
Universal Credit is also reduced for any savings over £6,000, while those with savings of £16,000 or above are not entitled to receive any Universal Credit at all.
Who will get the £650 payment?
The Government says the money will go to all households receiving the following seven benefits:
- Universal Credit
- Income-based Jobseekers Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
How and when will the money be paid?
DWP will make the £650 payment in two lump sums – the first from July, the second in the autumn. Payments from HMRC for those on tax credits only will follow shortly after each to avoid duplicate payments.
Claimants will need to be in receipt of one of the benefits mentioned above, or have begun a claim (which is later successful) as of May 25, 2022, to be eligible for the first of the two instalments. The Government says it will later set out the eligibility date for the second instalment.
This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on the amount anyone already receives in state support, the Government guidance says. Payments will go directly to households across the UK in the same way you receive your regular benefits, such as a bank or building society account.
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