The Department for Work and Pensions (DWP) has confirmed 689,000 households across Scotland will receive the first of two cost of living payments totalling £650 from July 14. The Initial automatic instalment for means-tested benefit claimants will be £326, with the rest to follow in a second instalment from an unconfirmed date in the autumn.
People who claim both a means-tested benefit and Tax Credits from HM Revenue and Customs (HMRC), will receive the £326 from DWP next month. Claimants who only receive either Working Tax Credits or Child Tax Credit will receive the first of their two payments later this year - a date has not been announced yet.
The extra financial help comes as part of a £37 billion UK Government package to help families with cost of living pressures. The DWP has also confirmed that 607,000 people living in Scotland will receive the one-off disability payment for £150, which will land in bank accounts in September.
The DWP has also revealed how many people in each part of the country will receive the new financial support. The figures show that nearly one in four households will receive the means-tested cost of living payment for £650, while nearly one in 10 people across the UK will be paid the £150 disability top-up.
In total, some 8,213,000 families will receive payments for £650 and 6,303,000 individuals will get the £150 disability payment.
The £300 pensioner cost of living payment will be added to Winter Fuel Payments in November and December - find out more about this here.
In total, millions of households will receive at least £1,200 from the UK Government this year to help cover rising costs.
Work and Pensions Secretary, Thérèse 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.”
Scotland Office Scottish Secretary Alister Jack said: “We know families across Scotland are struggling with the increased cost of living, and these payments will provide extra financial support to those who need it most.
“The UK Government is committed to helping Scots cope with the pressures of rising costs, and as part of a £37bn UK-wide package of support, we're giving help to pay energy bills, making changes to the Universal Credit taper rate, and providing the Scottish Government with funds to allow them to rebate Council Tax."
Autumn cost of living payment
The second instalment of £324 will be sent to qualifying low income households from the autumn. The payments are designed to be deliberately slightly unequal to minimise fraud risks from those who may seek to exploit this system.
The eligibility date for the second instalment will be announced soon. If people are eligible through receiving Tax Credits only, HMRC will contact them and issue payments automatically, with the first instalment being made from autumn.
DWP will administer payments for those on all other eligible means-tested benefits, and claimants do not need to contact them or apply for the payment.
Eligibility for £650 payments
To be eligible for the first instalment, families must have been entitled to a payment (or later found to be entitled to a payment) of either:
- Universal Credit for an assessment period that ended in the period 26 April 2022 to 25 May 2022
- Income-based JSA, income-related ESA, Income Support or Pension Credit for any day in the period 26 April 2022 to 25 May 2022
- Tax credit customers must have received a payment, or an annual award of at least £26, of Tax Credits on any day in the period 26 April 2022 to 25 May 2022.
Who is not eligible for the £650 payment?
You will not get 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
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