More than eight million households will start to receive the first of two payments totalling £650 to ease cost-of-living pressures from Thursday.
From July 14, a first instalment of £326 will start to be paid out to low-income households on benefits, the Department for Work and Pensions (DWP) previously announced. The second payment of £324 will follow in the autumn.
People may be entitled to receive the £650 in two lump sums if they receive certain support, such as Universal Credit, income-based Jobseeker's Allowance (JSA), income-related Employment and Support Allowance (ESA), Income Support, Pension Credit, Child Tax Credit or Working Tax Credit.
READ MORE: DWP 'improves clarity' on guidance around cost of living payment
Those eligible will be paid automatically, so they do not need to apply and payments may appear in accounts as "DWP Cost of Living". The DWP and HM Revenue and Customs (HMRC) have been identifying those eligible to receive a cost-of-living payment.
Many people will receive the first instalment between July 14 and 31, although for those receiving Tax Credits, the first payment is to be made from the autumn and the second from winter 2022. Pensioner households will also receive an extra £300 to help cover the rising cost of energy this winter, while people on disability benefits will receive an extra £150 payment in September.
From October, households will also have £400 taken off energy bills. People may also see an income boost in their pay packets this month, as national insurance (NI) starting thresholds increased from £9,880 to £12,570 from July 6.
However, this was after a 1.25 percentage point increase in NI in April, to help pay for health and social care.
People can find out more information about cost-of-living support at costoflivingsupport.campaign.gov.uk.
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