The exact date for when millions of people will start to receive the £650 cost of living payment has been confirmed by the Government.
The cash will be awarded to more than eight million households who receive means-tested benefits, such as Universal Credit and Tax Credits.
These are benefits where your income and savings are taken into account to determine how much you get.
The new support was announced by Rishi Sunak last month to help struggling families cope with the fastest rising standard of living in 40 years.
Prices of the cheapest food items in supermarkets have surged in the past year, while the cost of petrol and diesel has reached record highs.
The Chancellor had been under pressure to support the most vulnerable households after it was confirmed that energy bills could rise to £2,800 later this year.
Here, we explain when the £650 will start to arrive in bank accounts and who exactly is eligible.
What benefits do I need to claim to get the £650?
The £650 payment is only being awarded to those who claim means-tested benefits. This includes:
- Child Tax Credit
Income-based Jobseeker’s Allowance
Income-related Employment and Support Allowance
Income Support
Pension Credit
Universal Credit
Working Tax Credit
When will the £650 payment arrive in my bank account?
The £650 is being split up into two payments.
The Department for Work and Pensions (DWP) has now confirmed that £326 will start to hit bank accounts from July 14 for those who claim Universal Credit, income-related ESA and JSA, Income Support, and Pension Credit.
It will arrive between this date and July 31 into benefit claimants’ bank accounts - although not necessarily on the same day you receive your benefits.
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.
I'm not eligible for the £650 - what help can I get?
There are two other one-off payments being made to vulnerable households.
This includes £150 for those who claim certain disability benefits and £300 for pensioners in receipt of Winter Fuel Payments.
Every home in England, Scotland and Wales will also receive £400 off their energy bills, spread out over six months from October.
This is in replacement of the £200 "loan-not-loan" that had originally been announced last year by the Chancellor.
Critics said this support doesn't go far enough to help those worst-hit by the cost of living crisis, as the £200 had to be repaid at a rate of £40 per year from 2023.
This scheme will no longer happen now, as it has been replaced by the £400 discount off your energy bills, with this money no longer needing to be paid back.
The Household Support Fund has also been extended again by another £500million.
Some of the help that is offered through the Household Support Fund includes money towards your bills and supermarket vouchers.
However, the support does vary between councils - as well as the eligibility criteria.
This means each local authority decides who to give the money to, and how the money should be spent - so you may face a postcode lottery in terms of the help available to you.
