An update from The Department for Work and Pensions (DWP) has been issued about when people on tax credits will receive the £324 cost of living payment. The figure is the second instalment of the £650 cost of living payment for people on means-tested benefits.
Over 8 million households are set to receive help with the cost of living through the Government's support package. In the East Midlands there are an estimated 551,000 families eligible for the benefit.
People entitled to the payment include those on Universal Credit, Income Support, Pensioner Credit, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, child tax credits and working tax credits.
Most claimants eligible for the money received the first instalment of £326 in July and are scheduled to receive the second instalment between November 8-23. However, those eligible for the financial assistance through claiming tax credits have had longer to wait.
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According to the DWP, most people eligible for the £650 cost of living payment tax credits received the first instalment between September 2-7. Previously, the DWP said that tax credit claimants would get the second instalment in the winter. However, it has now confirmed that these claimants will receive the second instalment “shortly after people on the low income DWP benefits have been paid”. This indicates that the second instalment will be paid some time after Wednesday, November 23, writes Nottinghamshire Live sister publication, Leicestershire Live.
The £650 cost of living payment is part of a series of targeted payments intended to help vulnerable people with rising bills and prices. The £150 Disability Cost of Living Payment was provided in September, with a £300 additional pensioner payment to come in the Winter
Work and Pensions Secretary, Chloe Smith said: "We understand that people are struggling which is why and we’re committed to supporting the most vulnerable households. That’s also why we are focused on driving growth and delivering quality public services so we can continue to support those in need through these challenging times while boosting opportunity for all."
Other measures included in the support package include a government capped the average household energy bill at £2,500 a year as part of its Energy Price Guarantee. However, this is not an absolute limit and households may pay more than this depending on how much energy they use.
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