What Universal Credit claimants need to know about July's cost of living payment change

People who claim Universal Credit are set to see a change next month as they receive the first instalment of a one-off cost of living payment. The £650 payment is being paid in two lump sums to those claiming certain benefits to help with the cost of living crisis.

Chancellor Rishi Sunak announced the move last month as the UK grapples with soaring energy bills, rising food costs and record-breaking prices for petrol and diesel. The first half of £326 will start to land in bank accounts from July 14, with most payments expected to be made by the end of July. The second payment of £324 is expected to be paid to eligible households in the autumn, The Mirror reports .

There’s no need to apply for the payments, as they will be paid automatically in the same way you usually receive your benefit or tax credits. They are not taxable and will not affect the benefits or tax credits you usually receive.

READ MORE: Cost of living still rising with inflation at 40-year high, new figures show

The Chancellor has announced other cost of living support measures for those who are not eligible for the £650 payment, including £150 for those who claim certain disability benefits and £300 for pensioners who receive Winter Fuel Payments. Every home in England, Scotland and Wales will also see their energy bills cut by £400, spread over six months from October.

Benefits that qualify for the £650 cost of living payment:

• 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

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