Households on certain benefits will start receiving financial support to help them through the cost of living crisis within weeks. The Government’s £650 Cost of Living Payment will come through in two lump sums, starting in July.
More than eight million UK claimants of Universal Credit, pension credit and legacy benefits will get two payments of £325 each. The Government says the first instalment will begin to be paid in July.
The £650 in total will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards. It applies throughout the UK.
The exact payment date is not yet confirmed and will likely depend on when claimants receive Universal Credit during the month. The payments are part of a £15 billion support package announced by Chancellor Rishi Sunak to help struggling households.
A spokesperson for the Government said: “You will get one payment from July 2022 and a second payment in autumn 2022, if you’re entitled. You will need to have been entitled to one of these qualifying benefits on 25 May 2022 to get the first payment.
“We will update this guidance when the Government has announced the date on which you need to have been entitled to one of these qualifying benefits to get the second payment.
“If you have a joint claim with a partner, you will get one payment of £650 for both of you, paid in two lump sums from July 2022 and in autumn 2022, if eligible. You will not get a payment if you’re eligible for a Cost of Living Payment from HMRC because you’re entitled to tax credits.”
Those who receive the New Style Employment and Support Allowance or New Style Jobseeker’s Allowance will not be able to claim the Cost of Living Payment, unless they are also recipients of Universal Credit or a disability benefit. Recipients of a qualifying disability benefit may get an additional Disability Cost of Living Payment.
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