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Catherine Furze

Second cost of living payment should have hit most bank accounts this week

Nearly 90% of the families claiming Universal Credit who were waiting for the second cost of living payment this week should have received it, according to the latest figures released by the Department of Work and Pensions.

A total of 8.2 million households - or nearly one in four in the UK - are due to receive the £650 Cost of living Payment, nearly 400,000 of which are in the North East.

The £324 payment, the last part of the payment announced by then Chancellor Rishi Sunak earlier this year, started to be paid to Universal Credit claimants on Tuesday, November 8, although the DWP warned families that only "a small number" would be paid that day, with "numbers increasing significantly" from November 9 onwards.

Read more: How many people get the cost of living in the North East and where do they live?

The new figures show that 6.4 million payment have already been made this week at a rate of 1.6 million per day from November 8 to today, November 11, with 800,000 Universal Credit claimants still left to pay. The deadline for these payments to be made is November 23, then it is thought that the 1.2 million eligible families in receipt of Tax Credits and other legacy benefits will get their money from HMRC between November 23-30. Claimants on legacy benefits will be paid after November 23 to avoid duplicate payments if families are transferring to Universal Credit.

The first payment of £326 was made to most claimants in July, and many concerned people took to social media when they did not receive their payment on the first day due. This time round, the DWP moved to limit expectations by saying that most people will be paid from November 9 onwards.

In the summer, the DWP paid the first part of the cost of living payment to a total of 7.2 million families claiming Universal Credit, while HMRC paid 1.2 million families claiming legacy benefits such as Tax Credits, a total of 8.4 million payments, at a total cost of £5.4 billion.

In a small minority of complex circumstances, claimants may be paid automatically after November 23, 2022 – for example, if they were deemed unable to claim certain benefits, but won backdated entitlement on appeal, or where payments were rejected due to invalid account details. The DWP says it will seek to contact claimants directly where there are issues or delays.

To get the money, you must have claimed one of the following benefits between August 16 2022 to September 25 2022:

  • Universal Credit
  • income-based Jobseeker’s Allowance (JSA)
  • income-related Employment and Support Allowance (ESA)
  • Income Support
  • Pension Credit
  • Child Tax Credit
  • Working Tax Credit

The payment will be made separately from your benefit and the date your benefit is due will have no bearing on the date your cost of living payment arrives. Work and Pensions Secretary Chloe Smith said: ""We understand that people are struggling which is why and we’re committed to supporting the most vulnerable households. That’s also why we are focused on driving growth and delivering quality public services so we can continue to support those in need through these challenging times while boosting opportunity for all."

The £650 payment was announced in May as part of the Government's cost of living relief package. In addition, there is also an extra £300 payment to pensioners directly in November or December alongside the Winter Fuel Payment and £150 to individuals receiving disability benefits, which was paid in September.

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