Cost of living allowance: When will it be paid and how much can you expect to get?


More than eight million households across the UK are waiting for a cash payment to help with the cost of living. But when should it be paid and how much will you get?

Work and Pensions Secretary Therese Coffey presented detailed plans today. The first installment of £650 for eligible low-income households in England, Scotland, Wales and Northern Ireland will land in bank accounts from July 14.

Payments will then continue until the end of the month. With the move, households will initially benefit from £326 better as the UK government offers significant interventions to support groups most vulnerable to rising inflation and soaring energy bills – in total, millions of households will receive at least £1,200 this year to help with the cost of living, reports the Daily Record.

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Work and Pensions Secretary Therese Coffey said: “As millions of lowest-income households soon see the first of two cash payments land in their bank accounts, we are taking action to help families directly. to meet the cost of living. A payout totaling £650 is part of our £37 billion cost of living support package which will put an extra £1,200 in the pockets of those who need it most.”

The eligibility date for the second installment will be announced soon.

Chancellor of the Exchequer Rishi Sunak added: “We have a responsibility to protect those who pay the highest price from rising inflation, and we are stepping in to help. In July, more than eight million people will get their first payment of £326 to help with the price hike, part of a package worth at least £1,200 for vulnerable families I said we’d stand with people when they need help, and we are.

The second installment of £324 will be sent to eligible low-income households in the autumn. Payouts are designed to be deliberately slightly uneven to minimize the risk of fraud by those who may seek to exploit this system.

The eligibility date for the second installment will be announced shortly. Low-income households are benefiting from government support in different ways this year, as global inflationary pressures, exacerbated by the unjust war in Ukraine, have pushed up the prices of several essentials.

The UK government support includes the direct payment of £650 for more than eight million households on benefits, a separate payment of £300 for pensioners and a payment of £150 for people with disabilities, which can be paid in addition to the payment of £650. This is on top of £400 for all households to help pay energy bills, and a further £150 for properties in AD council tax brackets, meaning millions of lowest income households weakest will receive at least £1,200 in aid this year.

This is all on top of changes to the Universal Credit sliding scale rate and working benefits worth £1,000 a year on average for 1.7million working claimants, a rise in the National Living Wage to 9, £50 an hour and a tax cut for around 30 million. workers through an increase in national insurance contribution thresholds from 6 July. Below are the key dates and eligibility criteria for the three different one-off payments and the £400 energy rebate for home users – no one needs to apply for any of the new backers, they all will paid automatically.

July and fall

One-time payment of £650 for people on means-tested benefits. The £650 “cost of living payment” will be made in two installments for households on means-tested benefits.

People receiving these benefits will receive the payments

  • Universal Credit
  • Income-Based Jobseeker’s Allowance
  • Employment and Income Support Benefit
  • Income support
  • Work Tax Credit
  • Child tax credit
  • Pension credit

The Department for Work and Pensions (DWP) will make the payment in two lump sums – the first from July 14 and the second in the autumn. HM Revenue and Customs (HMRC) payments for those on tax credits only will follow shortly after each to avoid duplicate payments.

How to qualify for payment

To be eligible for the first of two installments, claimants will need to be in receipt of one of the benefits listed above, or have started a claim which has subsequently been successful, as of Wednesday 25th May 2022, HMRC and DWP will establish the date soon. eligibility for the second installment.

Other key payment points

  • This payment will be tax exempt
  • This will not count towards the benefit limit
  • This will have no impact on existing benefits

How will payments be made?

  • Direct to households across the UK
  • September
  • One-time payment of £150 for those on disability benefit
  • The ‘disability cost of living payment’ of £150 will be paid to those on disability benefit in September

People receiving these benefits will receive payment

  • Disability Living Allowance (DLA)
  • Personal Independence Payment (PIP)
  • Attendance allowance
  • Payment for disabled adults (Scotland only)
  • Payment for disabled child (Scotland only)
  • Armed Forces Independence Payment
  • Constant attendance allowance
  • War pension mobility supplement

How to qualify for payment

To be eligible for the £150 one-time payment, claimants must be in receipt of the benefits listed above or have started a ultimately successful claim for one of these benefits as of 25 May 2022.

Other key payment points

  • Disability benefit claimants, who also receive means-tested benefits, will receive £150 on top of the £650, but will be paid separately
  • Payments will be tax exempt
  • They will not be taken into account in the benefit ceiling.
  • Payments will have no impact on existing benefit allocations

How will payments be made?

  • Payments will go directly to eligible people across the UK
  • October
  • £400 off energy bills

The UK government will pay the £400 directly to energy suppliers who will provide this aid to households with a household electricity meter over a six-month period from October. Customers with direct debit and credit will see the money credited to their account, while customers with prepaid meters will have the money applied to their meter or paid via a voucher – this will depend on whether they have a smart meter or nope.

Who is eligible for the £400 Energy Bill Grant?

Household energy users in England, Scotland and Wales – equivalent support will be provided to people in Northern Ireland.

Other key payment points

  • The £400 does not need to be refunded
  • This support comes on top of the £150 council tax rebate for households in AD brackets (and with a reduction in Scotland), which was announced in February and which millions of households have already received.

How will payments be made?

  • Direct to energy suppliers – you don’t need to apply
  • November December
  • £300 one-off payment for people of state pension age
  • All eligible retiree households will receive the one-time “Retiree Cost of Living Payment” in addition to their annual winter fuel payment in November/December

Who qualifies for the £300 ‘Retirees Cost of Living Payment’?

Individuals will be eligible for this payment if they are past state retirement age (66 or older) between September 19 and September 25, 2022 and receive the winter fuel payment.

Other key payment points

  • The £300 will be paid on top of any other one-off support a pensioner household is entitled to, for example when on pension credit or receiving disability benefits.
  • The payment is not taxable
  • Payment does not affect eligibility for other benefits

Who is not eligible?

There are certain circumstances where someone above state pension age is not eligible for winter fuel payment which can be found on GOV.UK, here.

How will payments be made?

  • Direct to households across the UK

You can read detailed examples of how the additional support packages will affect different types of households on the GOV.UK website here.


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