The Government has confirmed when the first instalment of a £650 payment to help people ride out of the impact of the cost-of-living crisis will be made. The Department for Work and Pensions announced that millions of people will receive the first portion worth £326 on July 14.
The payments will be dished out from this date until the end of the month. The second portion of the payment will be sent out in the autumn.
It is part of plans from the Government to offer support to those struggling to pay bills as costs rise across several areas including energy bills, fuel and food. In total, the Government says it is giving out £1,200 to vulnerable households this year, including a £150 council tax rebate.
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Works and Pensions Secretary Therese Coffey said: With millions of the lowest-income households soon seeing the first of two cash instalments land into their bank accounts, we are taking action to directly help families with the cost of living. This one-off payment totalling £650 is part of our £37 billion cost-of-living support package that will put an extra £1,200 into the pockets of those most in need.”
To receive the first payment, people need to have received one of the eligible benefits or started a claim which is later successful before May 25. The eligibility date for the second instalment will be announced soon.
Later today (June 15), legislation to confirm the £650 payment is being laid out along with other elements of the Government's cost-of-living support package. Chancellor Rishi Sunak said: “We have a responsibility to protect those who are paying the highest price for rising inflation, and we are stepping up to help.
“In July, more than eight million people will get their first £326 payment to help with rising prices, as part of a package worth at least £1,200 for vulnerable families. I said we would stand by people when they needed help, and we are.”
Detailing the support being offered out, a statement on the Government's website states: “Low-income households are benefiting from government support in a variety of different ways this year as global inflationary pressures, exacerbated by the unjust war in Ukraine, have caused prices to rise for several essentials. The government understands that many people are worried about the impact these rising prices will have on their household finances, which is why £37 billion of support is being provided to boost budgets and mitigate the worst of these pressures.
“Support includes the direct payment of £650 for over 8 million households on benefits, a separate £300 payment for pensioners, and a £150 payment for disabled people, which can be paid on top of the £650 payment.
“This is on top of £400 for all households to help with energy bills, and an extra £150 for properties in Council Tax bands A-D, meaning millions of the lowest-income households will receive at least £1,200 in support this year. This is all in addition to changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants, a rise in the National Living Wage to £9.50 an hour, and a tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.
“The government has also expanded support for the Household Support Fund – which helps people with food and energy bills – with an extra £421 million, on top of £79 million for devolved nations; the total value of this support now stands at £1.5 billion. Fuel duty was also cut by 5p per litre for 12 months in March 2022, and alcohol duty has been frozen for 2022/23.”
Who will receive the £650 payment?
Information on the gov.uk website says: “More than eight million households on benefits will receive a payment of £650 this year, made in two instalments. This includes all households receiving the following benefits: Universal Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Pension Credit.
“The DWP will make the payment in two lump sums – the first from July 2022, the second in the Autumn. Payments from HMRC for those on tax credits only will follow shortly after each to avoid duplicate payments.
“To be eligible for the first instalment, claimants needed to be in receipt of one of these benefits, or have begun a claim which is later successful, as of May 25, 2022. This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
“These lump sums will be delivered in two slightly different payments of £326 and £324. The distinct value relates to a specific qualifying period, so it is simpler to determine if a payee received the correct payments, reducing the fraud risk of people who claim not to have had one of the specific two payments, as DWP will be able to clearly track those who have.
“All pensioner households will receive an extra £300 to help them cover the rising cost of energy this winter while people with disabilities will receive an extra £150 to help with additional costs they face. The Chancellor also announced an extra £500 million of funding.
“In England £421 million will be used to extend the Household Support Fund, which is designed to help low-income households with food and energy bills. The Devolved Administrations will receive £79 million. This is in addition to the £1 billion already provided for this support.
“Dates for the additional payments to disabled people and pensioners will be confirmed soon.”
