Millions of people are set to receive a £326 cost of living payment next week to help combat rising costs of living. Announced last month, the payments are the first of two instalments worth £650 being given to households as part of a UK government attempt to curb soaring living costs.
Around eight million people will start receiving the payments from July 14, but they will be staggered over the course of the month due to the number of people receiving the money, so you might not get yours immediately. The £326 payment will be made automatically into your bank account so you don't need to do anything in order to get it, with then-chancellor Rishi Sunak assuring people they would not have to fill out forms in order to receive the payment.
No exact date has been given for when people can expect the second instalment, worth £324, but it is expected to come in the autumn. While many households on the lowest incomes will receive the money next week, you could have your payments delayed or even miss out altogether depending on various factors.
Here is everything you need to know about who is eligible for the £650 payment and who does not qualify.
Who is eligible for the £650 payment?
It has been confirmed that the following groups are eligible and will receive the first instalment from July 14:
- Universal credit
- Income-based Jobseeker’s allowance (JSA)
- Income-related employment and support allowance (ESA)
- Income support
- Pension credit
These types of benefits are means-tested and to qualify, people need to demonstrate that their income, savings and capital are below a certain level. Those who only claim the following will get the first of their two payments later this year, with a date still to be confirmed.
- Working tax credit
- Child tax credit
Who doesn't qualify?
You will not be eligible for a payment if you get the following benefits, unless you also receive universal credit:
- New style employment and support allowance
- Contributory employment and support allowance
- New style Jobseeker’s allowance
The subject of whether those claiming housing benefits would receive the payments was recently raised by Lib Dem MP Daisy Cooper, who asked the DWP if it will broaden the eligibility criteria for the £650 payment to include people who are receiving that benefit. In a written response to Ms Cooper’s question, DWP minister David Rutley MP, said: “The UK Government is rightly targeting the £650 cost of living payment support at low-income households in receipt of qualifying means-tested benefits.
“Housing benefit is not a means-tested benefit. It is also administered directly from Local Authorities, often directly to a landlord. Payments to those receiving only housing benefit could not therefore be delivered in a quick, accurate and straightforward manner.”
There have already been concerns raised by other MPs about people claiming certain legacy benefits who do not qualify for the payment, something which the DWP has revealed is being determined by a computer program.
An update to the cost of living guidance on GOV.UK, said: "DWP is using a computer program to identify who should get a cost of living payment. If you disagree with this, contact the office that pays your benefit and tell them why you disagree."
It appears that the government is giving the payments to those on means-tested benefits, and those above will not qualify unless they are also receiving universal credit.
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