More than eight million households throughout the UK will receive a cash transfer starting in July to help with cost of living challenges.
The first £650 ‘Cost of Living Payment‘ will be made to eligible low-income households in England, Wales, Scotland, and Northern Ireland FROM July 14, 2022, and will continue until the end of the month.
Millions of households will be £326 better off as a result of the payment, as the government implements actions to help those who are most vulnerable to rising expenses.
This year, the government will provide at least £1,200 to millions of households to help them cope with growing prices.
In the autumn, qualifying low-income households will receive the second instalment of £324. The second instalment’s eligibility date will be revealed soon.
Overall, cost of living assistance consists of a £650 direct payment to over 8 million benefit households, a separate £300 payment for retirees, and a £150 payment for disabled individuals, which can be paid on top of the £650 payment.
There’s also £400 for all homes to help with energy costs, with an extra £150 for houses in Council Tax categories A-D, meaning millions of low-income families will get at least £1,200 this year.
The government has also increased funding for the Household Support Fund, which assists households with food and energy costs, by £421 million, on top of £79 million for devolved nations, bringing the total amount of support to £1.5 billion.
Work and Pensions Secretary, Thérèse 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.”
Chancellor of the Exchequer, Rishi Sunak added: “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 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.
“I said we would stand by people when they needed help, and we are.”
More details, including eligibility criteria, can be found at gov.uk.