Universal Credit claimants will get a temporary pay boost next month when the first half of the £650 cost of living payment starts to hit bank accounts.
The cash is being awarded to around eight million people who claim means-tested benefits, including Universal Credit.
Department for Work and Pensions (DWP) chiefs have confirmed the money is not taxable and will not affect the benefits you get.
It means households in receipt of eligible benefits will get a brief boost in their pay without any on-going payments being adjusted.
The first half of the £650 payment - worth £326 - will be sent to those who claim Universal Credit, income-related Employment and Support Allowance, income-based Jobseeker’s Allowance, Income Support, and Pension Credit from July 14.
It is expected that these first payments will be paid to the majority of people by the end of July - although the DWP has admitted that there could be some delays.
The second payment - worth £324 - will then arrive to these eligible households in the autumn, although no set date has been announced yet.
Those who claim Tax Credits will receive their first payment in autumn, with a second payment to follow in winter.
Again, there isn’t a set timeframe yet for when the money will arrive for Tax Credit households.
What benefits are eligible for the £650 payment?
The £650 payment is only being awarded to those who claim means-tested benefits - so where your income and savings are taken into account.
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
The £650 payment is only being awarded to those who claim means-tested benefits. This includes:
If you don't receive the money, the DWP has issued advice on how you can challenge a decision.
The DWP is using a computer program to identify everyone on means-tested benefits who is eligible for the cost of living support.
When you're picked up on the system, then the money should be sent to the bank account where you normally receive your benefits.
But if you don't get the cash, the DWP says you should contact the office which pays your benefit.
I'm not eligible for the £650 - what help can I get?
If you claim certain disability benefits, there is a £150 cost of living payment due in September.
Pensioners in receipt of Winter Fuel Payments will get an extra £300.
Every home in England, Scotland and Wales will also receive £400 off their energy bills, spread out over six months from October.
This money is applied 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.
Speak to your council to see what help it offers and if you’re eligible for support.
