Chancellor Rishi Sunak announced measures aimed at relieving some of the pressure households face amid the cost of living crisis.
He confirmed there would be £15bn worth of support to help people through dire times, with energy costs set to soar to £2,800 a year in October. And eight million homes across the country will start to see the first instalment of the £650 grant hit their bank accounts in just a few weeks.
Chancellor Rishi Sunak said: “We have a responsibility to protect those who are paying the highest price for rising inflation, and we are stepping up to help. In July, more than 8 million people will get their first £326 payment to help with rising prices, as part of a package worth at least £1,200 for vulnerable families. I said we would stand by people when they needed help, and we are”.
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Cost of Living payments will be made in two instalments with the first arriving next month, as reported in the MEN. From July 14, the Department of Work and Pensions (DWP) will begin sending payments of £326 to low-income households on benefits. The second portion of the one-off £650 payment will follow in the autumn.
Work and Pensions Secretary Therese Coffey said: “With millions of the lowest-income households soon seeing the first of two cash instalments land into their bank accounts, we are taking action to directly help families with the cost of living. This one-off payment totalling £650 is part of our £37 billion cost of living support package that will put an extra £1,200 into the pockets of those most in need.”
Who is eligible for the £650 payments?
Only people who are getting certain benefits or tax credits from the government are eligible for the payments. You do not need to apply, if you’re eligible, you’ll be paid automatically.
According to gov.uk, you may be eligible if you’re getting any of the following:
- income-based Jobseeker’s Allowance
- income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Universal Credit
- Child Tax Credit
- Working Tax Credit
You will need to have been entitled to one of these qualifying benefits on May 25 to get the first payment. Anyone who has a joint claim with a partner will get just one payment of £650 between the two.
Cost of Living payments form part of a support package for vulnerable households worth at least £1,200, according to the government. In addition to the £650, the package includes £400 for all households to help with energy bills, which will be applied to energy bills automatically from the autumn, and the £150 council tax rebate for properties in bands A to D, which councils started paying in April.
The government has also announced additional support for pensioners in the form of a one-off £300 payment, and for disabled people, who are eligible for an additional £150.
Legislation to confirm the £650, as well as the other elements of the government’s support package, is being laid before Parliament today. The £400 grant, which replaces the £200 loan announced by the chancellor earlier this year, will apply to all households and does not need to be repaid.
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