The Cost of Living Payment has been introduced by the Government to try and soften the blow of the skyrocketing costs of groceries, energy, and fuel. Eligible households across the country will be receiving a total of £650, which is being sent out in two payments - one of which has already been received by some.
In the South West, it is believed that 580,000 families are entitled to the means-tested benefit payment, which is seven per cent of the region's population. Across the UK as a whole, one in four families are said to be eligible, reports NottinghamshireLive.
It has been heavily publicised that the first payment of £326 has been deposited into bank accounts across the country since July 14, with most payments expected to reach those who need it by July 31 if they have not yet received it. But what about the second half of the lump sum?
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In its latest update on the highly-anticipated scheme, the UK Government confirmed that the second instalment of the £650 payment will be following in the autumn. Pensioners and disabled people will be receiving a second payment later this year.
Nadhim Zahawi, Chancellor of the Exchequer, 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."
Households who are eligible for the tax-free payments because they receive tax credits and no other eligible benefits will receive their first instalment from HMRC in the autumn, with the second instalment arriving in their bank accounts in the winter.
What we know so far
- More than eight million households on benefits will receive a payment of up to £650 this year, made in two instalments. This includes all households entitled to a payment of the following benefits: Universal Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Pension Credit.
- The DWP will make the payment in two lump sums
The first instalment of £326 will automatically go into eligible households between now and the end of the month (Sunday, July 31)
- The second payment will go out from the autumn.
- Payments from HMRC for those on tax credits only will follow shortly after each to avoid duplicate payments.
- To be eligible for the first instalment, families must have been entitled to a payment (or later found to be entitled to a payment) of either: Universal Credit for an assessment period that ended in the period 26 April 2022 to 25 May 2022, income-based JSA, income-related ESA, Income Support or Pension Credit for any day in the period 26 April 2022 to 25 May 2022.
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