More than eight million of the UK’s most vulnerable households will receive a one-off cost of living payment of £650 this year.
The tax free grant will be issued alongside a collection of Government measures, which comes as part of a £37bn Government package to help families with cost of living pressures
When will the £650 Government grant be paid?
The Government has announced that the £650 payment will be issued directly to households on means-tested benefits in two lump sums, with one sum of £326 paid from 14 July and another of £324 issued in autumn.
For joint benefits claimants the Government advises: “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.”
Talking about the grant, Chancellor Rishi Sunak said: “In July over 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..”
The date for the Autumn payment has not been confirmed yet.
For those qualifying for the one-off payment through tax credit and working tax credit, the two instalments will be paid in autumn and winter instead.
Who can claim the £650 payment?
According to the Government’s guidance, the payment will be given to all households on means tested benefits, including those receiving the following:
- Universal credit
- Income-based jobseekers allowance
- Income-related employment and support allowance
- Income support
- Working tax credit
- Child tax credit
- Pension credit
It advises that claimants will need to be in receipt of one of these benefits, or have began a successful claim, as of Wednesday 25 May.
Means tested benefits are awarded based on your income and how much capital you have – if someone can demonstrate that their income and capital are below a certain level, they qualify.
The Government advises: “You will not get a payment if you have already received a Cost of Living Payment from HMRC because you were entitled to tax credits.”
Experts have warned that families who lose their jobs after cut-off dates for benefit eligibility may miss out on some or all support.
There is no tapering of the grants being distributed, which means the full amount will apply to those who claim the lowest amount in benefits.
Those who are just outside of the income bracket for universal credit will be entitled to none of the additional grants.
In an interview with the Chancellor after his announcement, Martin Lewis pointed out that people on certain benefits, such as contribution-based employment and support allowance and personal independence payments (PIP), would miss out.
There is also concern that the very poorest do often not know they can claim benefits, despite being eligible, making them difficult to target with additional, means-tested support.