The government's cost of living payment will be a welcome boost to many Nottinghamshire households. As budgets are squeezed alongside rising fuel and food costs, the first part of the £650 payment should be winging it way into bank accounts from this week.
Department for Work and Pensions (DWP) has issued an update on the scheme and confirmed that the money will be sent out from Thursday, July 14. Paid is two parts, the first payment will be a lump sum of £326, followed by another payment of £324. The second amount is due to be paid in the autumn but details of the date and qualifying requirements have not yet been released.
However, DWP is using a computer system that enables them to identify everyone on means-tested benefits who are eligible for the cost of living support, according to LancLive. Anyone who is recognised on the system as being eligible will have the money sent to the bank they normally receive their benefits.
READ MORE: How to get support in Nottingham to tackle the rising cost of living
READ MORE: DWP face backlash over new methods for Universal Credit payments
If you don't receive the payment, but think you should be eligible, the DWP has explained how you can make a complaint.
Who is eligible for the £650 cost of living payment?
The payment will only be given to those people who currently claim means-tested benefits, so where your income and savings are taken into account.
This includes:
Income-based Jobseeker’s Allowance
Income-related Employment and Support Allowance
Income Support
Working Tax Credit
How do you feel about the payments? Tell us in the comments section.
The payment won't be paid in one lump sum but will be split into two payments. Those who claim Universal Credit, income-related ESA and JSA, Income Support, and Pension Credit will receive £326 from July 14.
By the end of this month, it is expected that the payments will land in claimants' bank accounts, but the DWP has warned there could be some delays.
DWP minister David Rutley said in response to a written question in Parliament that issuing payments "will be staggered" due to the high volume of people entitled to the payment.
He also warned: "We currently expect the majority of payments to be made by the end of July, there may be potential delays for a small minority of cases due to their unique characteristics."
The second £324 payment is expected to be sent to eligible households in autumn. Those who claim tax credits will receive their first payment slightly later, with this not expected to be processed until the autumn, with a second payment to follow in winter. The payments are being issued automatically to eligible households. They are not taxable and will not affect the benefits or tax credits you get.
What happens if I don't get the £650 payment?
Anyone who wants to challenge why they haven't received the payment should contact the office that pays your benefit. You will need to explain that you've not received the payment and why you think you are eligible for it.
Want the latest news delivered straight to your inbox? Click here to sign up for Nottingham Live's newsletters. .
The DWP updated guidance reads: "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."
If I'm not eligible for the £650 payment, what help can I get?
Not everyone who claims benefits will be eligible for the £650 payment, but there is other help available. There's a £150 payment being made to anyone who claims certain disability benefits and £300 for pensioners in receipt of Winter Fuel Payments.
In England, Scotland and Wales, everyone home will also receive £400 off their energy bills which will be spread out over six months from October. The money will be applied directly to your energy bills and doesn't need to be paid.
This is in replacement of the £200 "loan-not-loan" that had originally been announced last year by the Chancellor. The Household Support Fund has also been extended again by another £500million. You need to speak to your council to see what help it offers and if you’re eligible for support.
READ NEXT:
Wave a virtual flag for your Commonwealth Games team. Send your message of support here.
Household Support Fund: What Nottingham city residents need to know
Household Support Fund: How support will be offered to residents in Nottinghamshire
Property expert details how every household can cut energy bills by £3,246 a year
DWP proposes curfews and tags for parents who fail to pay child maintenance
