The government has begun to roll out the first half of the planned Cost of Living payment to millions of vulnerable households across the UK to help with soaring gas and electric bills.
The first instalment of £326 will begin to automatically land into eligible people's bank accounts between now and Sunday, July 31. However, many may already be looking forward to the second instalment of £324 to help as much as possible with bills.
Work and Pensions Secretary Thérèse Coffey confirmed that "this first instalment of £326 should reach all eligible low-income households by the end of July." Meanwhile, the government confirmed that the second instalment would arrive in autumn, Nottinghamshire Live reports.
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Pensioners and disabled people will be receiving a separate support payment later on in the year. Chancellor Nadhim Zahawi said: "It’s great that millions of the families who are most in need are starting to receive their Cost of Living Payments, which I know will be a massive help for people who are struggling. Alongside tax cuts, changes to Universal Credit and the Household Support Fund, these payments are a vital part of our £37 billion support package to help people deal with rising prices."
It comes as the rate of inflation soars across the country, peaking at a new 40-year high. Consumers are also suffering from increases in both gas and electricity tariffs.
What has been confirmed so far
- The DWP will issue the cost of living payment in two lump sums totalling to £650.
- The first payment of £326 will land in people's accounts between now and Sunday, July 31
- The second payment will arrive in autumn.
- More than eight million households on benefits will receive the payment this year. This includes households receiving Universal Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Pension Credit.
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