The Department for Work and Pensions (DWP) unveiled plans earlier this year to issue a £650 one-off cost of living payment to over 8 million households throughout the UK.
The UK Government department stated that it would begin sending people eligible for the boost the first instalment of the payment — £326 — in July. The money will begin arriving in accounts starting July 14 and will continue through to the end of the month.
As reported by the Daily Record, the sum will be paid to those who claim certain means-tested benefits as well as Tax Credits from HM Revenue and Customs (HMRC). People who only claim Working Tax Credits or Child Tax Credits will receive the first instalment later in 2022.
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According to new information released by the DWP, "potential delays" are possible, meaning some people will get their money later than intended. Responding to a question from MP Neil Coyle regarding whether those claiming Universal Credit will be sent the money as other benefit claimants, the DWP revealed that payments are being staggered.
It explained that this is due to the fact that a large number of people are eligible for the cost of living payment. The UK Government department added that there “may be potential delays for a small minority of cases due to their unique characteristics”.
DWP Minister David Rutley commented: “Due to the volume of people entitled to the payment, it is not possible to issue all of the Cost of Living Support Payments at the same time. Issuing payments will be staggered, but not by benefit type, starting on July 14, 2022.”
He added: “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.”
Read on for a full rundown of the key information you need to know about the £650 cost of living payment, including which benefits you need to be claiming to be eligible.
Benefits that qualify you for the £326 payment
You can get the first £326 instalment of the cost of living payment starting from July 14 if you claim any of the following benefits:
- Universal Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Working Tax Credits - see further down for full details
- Child Tax Credits - See further down for full details
Who is eligible for £326 cost of living payment?
In order to qualify for the cost of living payment, you must have been claiming (or started a claim that was later successful) either:
- Universal Credit for an assessment period that ended in the period April 26, 2022 to May 25, 2022
- Income-based JSA, Income-related ESA, Income Support or Pension Credit for any day in the period April 26, 2022 to May 25, 2022
You will not be eligible if you get:
- New Style Employment and Support Allowance
- Contributory Employment and Support Allowance
- New Style Jobseeker’s Allowance, unless you get Universal Credit
£326 payment if you get Tax Credits
In order to receive the £326 payment, you must have been claiming (or made a claim that is later successful) either Child Tax Credit or Working Tax Credit.
Those who receive both will get the cost of living payment for Child Tax Credit only.
When will I receive the £326 cost of living payment?
People who only get Tax Credits will be issued the first £326 instalment this autumn, and the second instalment in the winter.
People who receive Tax Credits from HMRC, as well as a qualifying benefit from the DWP, will get the cost of living payment anytime after July 14.
Those who also claim a qualifying disability benefit may also receive an extra £150 Disability Cost of Living Payment.
£150 if you get certain disability benefits
You may get a lump sum payment of £150 if you’re getting any of the following:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment
- Child Disability Payment
- Armed Forces Independence Payment
- War Pension Mobility Supplement
Eligibility
You must have received a payment (or later receive a payment) of one of these qualifying benefits for May 25, 2022 to get the payment.
If you get a qualifying disability benefit from the Ministry of Defence (MOD) and a qualifying disability benefit from DWP, you will get a Disability Cost of Living Payment from DWP only.
When you will get paid
Payments will be made in September 2022.
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